how to shop for reverse mortgages
Reverse mortgage loan applications need the following documents from the borrower and it’s very important that they provide everything that is needed to process their loan in a timely manner.
How quickly a loan funds and closes mainly depends upon the borrower’s cooperation in providing whatever the lender as requested.
- Copy of photo I.D. Typically a current Driver’s License or a Passport
- Copy of Social Security Card or a Medicare Card
- Copy of Social Security Awards Benefit Letter. These are mailed out each December and show how much Social Security income will be received in the following year.
- (2) Months of checking acct statements ( All pages) to show SS deposits or any other payments such as a pension/retirement check.
- Most recent statement for any existing mortgage(s)
- Copy of Homeowners Insurance Declaration Page
- Complete copies of most recent quarterly statements for investments and or 2 months of bank statements. All pages.
- Copy of Trust if one is in place. The new loan will record in the name of the Trust.
- Name and Phone number for the management company if there is a Home Owners Association.
If the borrower is currently employed or receiving income from rental properties, the following items will also be required along with the list above this line.
- (2) Years Federal Tax Returns – All Schedules
- (2) Years W’2’s and any 1099’s
- Most recent Year-to-Date Pay Stub for the previous 30 days.
Yes, I know. It’s a lot of documentation and it’s very similar to what is needed for a traditional loan. However, it continues to quite easy to be approved for a Reverse loan compared other mortgages.
Plus, you won’t have any payments to make on it, so don’t be intimidated by this list.
If the reader has any questions about this or anything else about Reverse loans, please call me. I’m here to help you through the confusion.