Reverse Mortgage Online
Having work with a number of reverse mortgage lenders who do a majority of their HECM loans online and via mail, we've been exposed to some of the more common concerns borrowers bring up.
How does it work without actually meeting in person?Simple, with the use of online technology, telephones, e-mails, notaries, traditional mail, a borrower can get a reverse mortgage without even having to leave the comfort of their own home.
Communication via E-Mail/Telephone
When working with a lender that is located in a different state, you will typically receive a lot of correspondence through e-mail and via the telephone.
A notary is a person with legal training who is licensed by the state to perform acts in legal affairs, in particular witnessing signatures on documents. Most notaries are mobile notaries that can meet with you in a local Starbucks or other mutual location. A notary is used towards the end of the reverse mortgage process to witness the signatures of the loan documents. They typically are not trained to explain any of the clauses or terms of the loan. They are there to simply witness that you are who you say you are and that you signed the documents.
How do I get the money?
Contary to what a few people may believe, the bank will not deliver a suitcase full of money when the loan is closed. The bank will simply ask for your routing number and bank account number and will deposit the funds.
How is online versus in-person different?
In reality, when you meet with a local reverse mortgage loan officer, there is typically no more than 2 meetings. A lot of communications is still done via e-mail and phone, even if you are working with a local person.