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Santa Clarita Reverse Mortgage Specialist Explains Loan Process in 3 Steps

Santa Clarita Reverse Mortgage Specialist Explains Loan Process in 3 Steps [Video]

Reverse mortgage loans can sometimes be confusing, says one Santa Clarita reverse mortgage specialist.

“There can be confusion surrounding a reverse mortgage,” says Steve Schaefer, a Santa Clarita reverse mortgage specialist and mortgage professional at American Family Funding. “The biggest misconception is that these are last resort loans, when in reality, many of the families I work with find them to be hugely beneficial when used correctly and at the right time.”


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For those of you who are curious about the reverse mortgage process, here’s a simple 3-step guide to understanding the process.

  1. Analyze the Benefits of a Reverse Mortgage

First and foremost, Schaefer explains, you need to be sure a reverse mortgage is right for you. This requires an analysis of your financial situation to ensure you fit within guidelines and will benefit from the program.

“I ask some questions and do a personalized reverse mortgage analysis for you,” Schaefer says of his own process with clients. “Once we complete that, I take some additional information on your income, your financial obligations, and other living expenses, and we do a Financial Assessment.”

  1. Complete Independent HUD Approved HECM Counseling

Next, you’ll need to complete a counseling session to demonstrate your understanding of a reverse mortgage. There are HUD Approved reverse mortgage counseling agencies that provide independent third party counseling to you for a standard fee, generally $150 for a 90-minute session. Counseling can be done in person or by telephone.

Reverse mortgages are also known as Home Equity Conversion Mortgages (HECM).  You can go to the HUD website, www.hud.gov, or call (800) 569-4287 to find a HECM Counselor near you. As a convenience to clients, Schaefer includes a list of HUD Approved Counselors with the reverse mortgage analysis.

When you complete counseling, you receive a HECM Counseling Certificate and a California Addendum form if the counseling was done by telephone. These certificates are good for six months.

“Upon completion in California, we have to wait seven days,” explains Schaefer. “It’s called a ‘cooling off’ period and gives people additional time to consider their options.”

  1. Complete Your Application

After the seven day “cooling off” period, you submit a copy of your HECM Counseling Certificate (and the California Addendum, if necessary) to a reverse mortgage professional and request a reverse mortgage loan application. Schaefer doesn’t recommend trying to fill out the application on your own.

“I will draw up an application for you and then guide you through the process,” says the Santa Clarita reverse mortgage specialist, “but to get started, I provide a free reverse mortgage analysis to see if it fits your needs.”

American Family Funding a Division of American Pacific Mortgage Corporation NMLS #1850

Stephen  Schaefer NMLS #950999 — Licensed By the Department of Business Oversight Under the California Residential Mortgage Lending Act.

Santa Clarita home loans, Home loans, Mortgage lender, Mortgage broker, Bad credit, Reverse mortgage, First time homebuyers, VA loans, Low down payment, Refinancing, American Family Funding, Santa Clarita

Ed. Note: This article is a KHTS Community Spotlight based on a recent interview with Santa Clarita home loan lender, American Family Funding.

Santa Clarita reverse mortgage lender American Family Funding can help you fulfill your dream of home ownership. A highly rated Santa Clarita mortgages lender, American Family Funding maintains a focus on community involvement and a commitment to giving back whenever possible. A friendly mortgage advisor will make the first time homebuyer experience an easy and stress-free experience — even with bad credit or a low down payment. The Santa Clarita home loan officers at American Family Funding also specialize in VA loans, reverse mortgages, refinancing and the STAR Loan Program.

American Family Funding

28368 Constellation Road

Suite 398

Valencia, CA 91355

(661) 284-1150

info@affloans.com

Do you have a news tip? Call us at (661) 298-1220, or drop us a line at community@hometownstation.com.

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Santa Clarita Reverse Mortgage Specialist Explains Loan Process in 3 Steps [Video]

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About Kirsten Quinn

A multimedia journalist and editor, Kirsten Quinn has been working in news media for six years, concentrating on coverage of the Santa Clarita Valley. She maintains a passion for quality content, whether she is producing web or print stories, video, social media content or marketing materials. Kirsten currently works as multimedia journalist for KHTS AM-1220 while also running WordSmith, a content marketing side business that serves the Santa Clarita Valley and beyond. Her previous positions include: Special Sections Editor for The Signal newspaper, Features Editor for The Signal, and Editor for The Magazine of Santa Clarita and élite Magazine. In any role, Kirsten strives to create synergy in the workplace, meaning on the page/screen, and connection in a world of fast-paced, ever-evolving communication.