Reverse for Purchase Documents & Timeline Guide - Didyoung

Reverse for Purchase Documents & Timeline Guide - Didyoung

HECM for Purchase: Documents & Timeline We’re excited and honored to be your guide throughout this purchase process! Below is a list of required documents and a timeline that must be met prior to the closing date. Please understand that my team and I will be funneling documentation through the buyer’s agent, not the listing agent, builder, or title company. When we correspond with the title company, we will copy the buyer’s agent on emails that may require your assistance. Note: For every business day the documents are late, may/will cause delays for the desired closing date and possible postponement. Let’s work together so we can achieve a successful closing and funding! PRE-APPROVAL (Documents were provided, and will—if applicable—need updating for the application): Picture ID: Driver’s license, state-issued identity card, or passport Social Security ID: SS card, W2, SSA-1099 (available at ssa.gov or 1-800-772-1213) Power of Attorney (if applicable): DPOA convenience (no doctor letter required) Copy of Trust: Required for properties vested in Living or Irrevocable Trust (all pages) Departure Home: Pay history of at least 24 months (taxes, homeowner’s insurance, HOA payments) Verification of Rent: Provide landlord’s name, address, email, and phone to verify you have paid rent timely and the length of time at residence If Pending Sale, provide estimated closing statement showing net proceeds Title Fees: Provide (as soon as possible) the name of settlement agent in order for the lender to timely obtain and estimate HUD-1 with accurate title fees for the purchase transaction HUD Counseling Certificate: Make sure you ask for HECM for Purchase Counseling. The signature/date on the certificate should be completed on the date of your counseling appointment (Names should match the contract of sale) HUD-1/CD: Closing statement from the settlement of departure home sale, deposit OR wire confirmation, and accompanying bank statement reflecting deposit Bank Statements: Two months’ checking and savings (all pages) Income Proof: Most Recent Year’s Social Security Benefit Statement: Must show lifetime benefit Pension Awards Letter: Must show it will continue for a minimum of three years, and a recent bank statement showing income direct deposit Retirement Account Statement: Last two months OR quarterly statement Employee Verification: Last two years of W2s and 30 days of current pay stubs (if applicable); plus, contact information of manager/HR personnel who can verbally verify employment Self-Employed Borrowers: Most recent two years’ tax returns (all schedules) APPLICATION (Documents needed within 3 days of a fully-executed contract): Earnest Deposit Money: Copy of checks accompanied by account statements (all pages) for each check paid to seller, reflecting the month the check cleared. All large deposits to be sourced; funds cannot be borrowed from any source Funds to Close: Must show money trail from departing account to checking/savings account where funds will be wired to the title company for closing Note: If the funds to close are departure home sale net proceeds, then the funds can be transferred directly from the settlement agent to the HECM for purchase settlement agent. If deposited to your checking or savings account, provide the closing statement, wire transfer to the borrower’s account, and a current print out for the account where deposited. This will become the account RMF calls out as a critical asset for funds to close to settle our purchase transaction. CAUTION: DO NOT MOVE FUNDS ONCE DEPOSITED! Asset Verification: Only if needed for asset dissipation (all pages) of 90 days/quarterly statements Credit: Letter of Explanation (LOE) for late payments, collections, charge-offs, credit inquiries; LOE for name variations/ addresses (divorce decrees and death certificates, if applicable)

(Continued)

Fully-Executed Contract of Sale: Evidencing no seller concessions or incentives Fully-Executed FHA Amendatory Clause/Real Estate Certification: Must be signed by all parties IMPORTANT Second Appraisal May Be Required by FHA (mentioned in application docs): We will rush this order, however we may need to reset expectations with sellers and listing agent/builder on a revised closing date APPRAISAL ( Documents needed within 2 days of signed application):

CLOSING (Documents needed within 7 days of closing date):

Final Certificate of Occupancy: Builder must provide Hazard/Homeowner’s Insurance: Provide declaration page for new home Funds to Close: Must show money trail from departing account to checking/savings account where funds will be wired to the title company for closing CAUTION: DO NOT MOVE FUNDS ONCE DEPOSITED! Title Company Wire Instructions: Must be acquired from Title, set up for a wire 2 days prior to closing (please overfund the wire by $1,500 over the amount required from Pre-HUD-1 document); must be the same cash to close account— no exceptions Please contact me if you have any questions or need additional information. JULIE DIDYOUNG Reverse Mortgage Loan Specialist, NMLS #485913 717-951-0058

[email protected] reversefunding.com/julie-didyoung Branch NMLS# 1190164 433 Patriots Way, Lititz, PA 17543

We’re proud to continually earn high praise from our customers:

98% Customer Satisfaction rating as of January 2022. LendingTree, Trustpilot, and Better Business Bureau ratings as of January 2022. This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency. NOT FOR CONSUMER USE. ©2022 Reverse Mortgage Funding LLC, 1455 Broad Street, 2nd Floor, Bloomfield, NJ 07003, 1-888-494-0882. Company NMLS ID: #1019941. For licensing information, go to: www. nmlsconsumeraccess.org. Arizona Mortgage Banker License #0927682; Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; Loans made or arranged pursuant to a California Financing Law license; Georgia Mortgage Lender Licensee #36793; Massachusetts Mortgage Lender License #ML1019941; Licensed by the New Jersey Department of Banking & Insurance; Licensed Mortgage Banker- NYS Department of Financial Services -in-state branch address 700 Corporate Blvd, Newburgh, NY 12550; Rhode Island Licensed Lender. For California consumers: For information about our privacy practices, please visit https://www. reversefunding.com/privacy. Not all products and options are available in all states. Terms subject to change without notice. Certain conditions and fees apply. This is not a loan commitment. All loans subject to approval. L4211-Exp012023