Below is a graphic representation of the steps and the time these steps usually take in the reverse mortgage process. From the time a lender sits with you to write your application (never do an application over the phone – see Choosing a Lender) to the time you actually get your money is about 5 weeks. Lately, however, processing has bogged down with some lenders and you can count on about 6 to 8 weeks for your loan to get to closing. This assumes there are no issues that come up during underwriting that might take even more time to resolve.
An experienced reverse mortgage originator (5 or more years direct reverse mortgage experience) will help you avoid any possible black holes. He/she should be able to estimate the total time your loan will take based upon a thorough understanding of your situation.
NOTE: If your originator is a broker (not an employee of a captive lender like Bank of America, Wells Fargo, MetLife, Financial Freedom, etc.) he/she should be able to help you select a lender that might process faster or a lender that has less stringent underwriting requirements relative to issues that impact you.
Carefully choose your originator. There is a difference among lenders even though the program is regulated heavily. All lenders are not the same!
Author – Robert H. Irving, CSA
Senior Reverse Mortgage Consultant