Nearly all states and government-insured loans require that reverse mortgage borrowers participate in a counseling session with a HUD-approved third-party counselor. After the borrower completes the counseling, their reverse mortgage counselor will submit a counseling certificate to the lender. When they have received a counseling certificate, the lender can begin processing a mortgage loan application. During processing, the lender will order an appraisal, title report, and a flood certification. An underwriter will prepare a financial assessment as part of their evaluation of the mortgage loan application and lender-required documents such as income statements, tax returns, credit report, social security statements, hazard insurance policy, appraisal, title report, and flood certification.

Approved mortgage loan applications will be scheduled for closing. Before closing, the borrower will receive various disclosures explaining the mortgage loan's costs and terms. On the day of closing, the borrower will sign multiple documents, including a Mortgage or Deed of Trust, Note, Loan Agreement, and important disclosures concerning the terms and conditions of the mortgage loan. If the mortgage loan is a refinance, the loan proceeds will be disbursed to the borrower and third parties, including the payoff of an existing mortgage lender following a 3-day period within which the borrower may cancel the transaction at no cost to them. This period is known as the 3-day Right to Cancel.

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