Four Key Things to Expect at Closing

Congratulations! You’ve made it through the reverse mortgage process, and now it’s time for the final step—closing. To help you prepare, I’ve put together a quick video (about 5 minutes) explaining what happens next.

1. A Visit from a Notary or Title Agent

A notary or title agent will meet with you—either at your home or another convenient location—to oversee the signing of final documents.

2. Signing Your Name (A Lot!)

Be ready to sign multiple documents, including final loan agreements, legal disclosures, and any remaining paperwork to complete your reverse mortgage.

3. Confirming How You Want Your Money

If you’re receiving funds from your reverse mortgage, you’ll confirm the details of how you’d like to receive them—whether as a lump sum, a line of credit, or monthly payments.

4. A Moment to Celebrate!

Closing marks the beginning of a new financial chapter. Whether you’re increasing cash flow, securing a financial safety net, or eliminating mortgage payments, take a moment to celebrate this important step!

A Quick Note About What Gets Recorded

After you sign, the title company will record the mortgage (also called the Deed of Trust) with your county or municipality. You might notice the recorded amount is higher than the funds you’re actually receiving. That’s not a mistake—it’s standard HUD protocol.

Per HUD Handbook 4235.1, Rev-1, Section 4-21, the reverse mortgage is recorded at 150% of the home’s appraised value. This doesn’t mean you owe that amount. It’s simply a forward-looking estimate of how the loan balance may grow over time, due to interest and mortgage insurance. It’s a safeguard, not a debt.

Video Message from Don:

If you have any final questions before closing, reach out—we’re here to help.

The content of this blog is for financial advisors and professionals only and is not intended for consumer use. Names, cases, and scenarios are fictionalized for illustrative purposes. The opinions expressed here are those of the author alone and do not reflect the views of any affiliated entities or individuals. Don Graves, NMLS #142667.