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With traditional mortgages, loan proceeds are provided up front
and the borrower makes monthly payments over the lifetime of the loan term.
Income for Life home equity draw mortgage is different, because no payments are
due as long as the borrower lives in their home. In addition to this, these
loans offer several different options on how the loan proceeds may be received:
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Receive regular monthly installments to supplement your existing income.
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Setup a credit line account so you can withdraw funds only when needed.
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Receive all loan proceeds up front in one lump sum amount.
Any of these options may also be combined together. For example, you may want
to receive some money up front for home improvements or debt consolidation, and
receive smaller monthly disbursements over your lifetime.
When the last surviving borrower passes away, sells the home, or moves out of
the home for 12 months or more, the loan becomes due. At that time, the heirs
can choose to refinance, sell, or payoff the loan with other available assets.
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Initial Consultation
The first step is to speak with one of our Knowledgeable Income for Life
consultants. Each member of our staff has extensive training on home equity
draw mortgages, and it's important that we understand your personal situation
first hand. We will ask you some basic questions about you and your home, and
explain the various options and how much income is available to you.
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Application
Excellent customer service is our #1 priority. After the initial consultation,
a loan representative will speak with you in order to complete the loan
application and answer any further questions you may have.
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Independent Counseling
It's important that you understand all of the pros and cons about home equity
draw mortgages so you can decide if it's right for you. In fact, the Department
of Housing and Urban Development (HUD) requires you to receive counseling from
a certified independent counselor. This service is provided to you free of
charge.
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Appraisal & Inspection
A licensed appraiser will come out to your home to determine the fair market
value of the property. The appraisal report helps determine how much equity you
have to borrower against, and it also lets us know if any major repairs are
needed to meet the loan guidelines. In some cases a termite inspection may also
be required.
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Underwriting
This is the process of reviewing the loan application, loan documents, and
appraisal report and verifying the loan guidelines are met. Underwriting occurs
on all types of mortgage loans.
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Closing
Loan closing is the last step in the process. During the closing, any existing
mortgages or liens against your home will be paid and the remaining proceeds
will be available to you. Remember, you have several options on how to receive
your money - one lump sum at closing, regular monthly disbursements, or a
credit line account.
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