The Loan Process
Step 1. Initial Application (1-2 weeks)
The application consists of a few simple personal questions. We can take your application over the phone or we can send the application to your e-mail.
Step 2. Conversation & Quote (a few days)
After reviewing the application and after having an initial conversation, we can present a variety of quotes. We will then schedule a time to review the options and can help you choose what best supports your goals.
Step 3. Counseling (1-2 weeks)
This task is done most over the phone with a HUD-approved counselor. Counseling must be completed prior to the start of your loan. You will be e-mailed a certificated, which must be signed and sent to your Loan Officer.
Step 4. Gather Documentation (a few days-2 weeks)
There are a handful of documents we will need. The document must be turned into your Loan Officer before your loan can be sent to underwriting.
Step 5. Sign Loan Application (2-3 days to prep, then e-sign)
After we have fine-tuned your loan application, you will need to sign it. We can send the loan application via e-mail for you to sign electronically OR you can sign a paper copy.
Step 6. Processing and Ordering the Title Report (1 -2 weeks)
Once the application is signed and we have all of the documents, your loan will go to Processing. The Processor will order a title report to confirm legal ownership. Once we receive the title report, your appraisal can be ordered.
Step 7. Appraisal (1-4 weeks)
Once the appraisal is ordered, the appraiser will contact you to set up a time to come to your home. The appraisal establishes the legal value of your property. You will need to pay for appraisal upfront. When we receive the appraisal report, your loan may need to be restructured based on the updated appraised value. Appraisals are conducted by an FHA-approved appraiser and must follow FHA standards.
Step 8. Underwriting (1-3 weeks)
Your loan will go to underwriting once we've received all required documents. Once underwriting is complete, there are always a few additional documents or details we will need to resubmit to underwriting.
Step 9. Closing (1-2 weeks)
When underwriting is complete and your appraisal is approved, your loan is ready to close. You will be contacted to set up a convenient time and location for you to sign the final loan documents.
Step 9a. Post-Closing
The title company will issue a check to the homeowner if proceeds are available from the HECM. If you are using a HECM to omit your mortgage payment, then no proceeds will be sent. Mortgage payments on the house, moving forward, will no longer be required. You have a choice to make interest and/or principal payments at any time. You will still be responsible for property taxes, home insurance/hazard insurance, HOA dues, and general upkeep of your home.