Getting assessments on just about anything can seem laborious or tedious; who wants to have something close to them looked at with a magnifying glass? But appraisals for HECM reverse mortgage loans are not only very helpful for everyone involved, they’re required by the lender. Part of what determines the amount of funding available from a reverse mortgage is the appraised value of the home. Luckily the process is pretty simple.
First, after talking with a reputable reverse mortgage advisor, you will submit your application. The advisor or lender will be the one to contact an appraiser who will in turn contact you to set up a time for them to look at your home.
The procedure is standard and involves three steps, the inspection, the research, and the report.
The appraiser will walk through your home with you, he or she might take photographs. It will document features that add value to your home. If the appraiser takes a picture of something in need of repair it lets you know that it matters and gives you a chance to fix it.
Once the walk through is done, the appraiser’s work continues as they research factors that influence the value they place on your home. Home sales in your area are one area of research. Others include multiple listing services, tax assessor’s records and public records come into play. Anything that will help to give the present value will be taken into account.
The Official Report:
This is the synthesis of the appraiser’s home visit and all the research. The report is used with your loan request. If photographs were taken, they will be included as well.
The appraiser gives this report to the lender who will give you a copy and an updated reverse mortgage figures taking into account the new information.
Reverse mortgage is an individualized, specialized loan for those 62 and older that allow older individuals and married couples to tap into the equity of their home while living mortgage and loan payment free. The funds can be accessed via a lump sum, line of credit, monthly installments, or even to purchase a home. If you are planning ahead let your reverse mortgage advisor guide you in the many scenarios that are possible, and the two of you can discuss your needs and desires.
Sara Cornwall is a local Reverse Mortgage Advisor serving the entire state of Connecticut. Contact Sara and learn if reverse mortgage is right for you.