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Reverse Mortgage Information: What Happens During Closing


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TERMINOLOGY

It is essential for all applicants to acquire as much information as possible about the closing process in a reverse mortgage.  Once you have completed the primary steps of a reverse mortgage -- including going through the application process, completing counseling, appraisal, inspection and underwriting-- the closing typically involves the final signage of all the documents and a careful review of the terms and conditions by which you are agreeing to abide. 

The first step in the closing process is the scheduling of an appointment by the title company and the lender. They will select a time, date and location that is convenient for you and bring to you all the necessary documents to sign.  It is imperative to carefully review and confirm all the details of the documents prior to signing anything. You need to know exactly what you are agreeing to and make sure you understand all possible outcomes of the reverse mortgage. Do not be hesitant or afraid of asking questions. This is, after all, your home.

If you notice anything unusual or incorrect in the documents, ask the lender to rectify or explain. Once the signing is complete, you have three business days (known as the rescission period) to cancel the loan if you elect to back out.