The Appraisal is A Critical Step in the Reverse Mortgage Process - Are You Ready?
You've done your reverse mortgage counseling, completed the HECM application and it's time for the appraisal. In order to avoid a re-inspection (and an extra fee of at least $100) do your own inspection of your home and take care of anything that may be an issue on the appraisal.
Let's start with the exterior of your home. If there any pealing or chipped paint that you can take care of prior to the appraiser's visit it would be helpful, otherwise, we will ask for a bid and set aside funds to have it
painted later. Look for anything that may be considered health and safety related such as missing handrails along stairways, cracked windows, broken doors, blocked doorways or access ways or unsafe stairways. Verify that your garage door reverses or stops when it meets resistance. Walkways should be in good repair and free of tripping hazards. Look for signs of pest infestation on structural wood near the ground. Are there signs of pest such as tunnels, swarms or indications of dead bugs? You may want to hire an exterminator and clean up the area. How is your drainage? Is there any accumulated water in low spots and are gutters and downspouts routing water away from your foundation? Take a look at your roof for signs of leaks and deteriorating shingles. If the roof has a life expectancy of two years or less, the FHA appraiser will recommend that it be repaired or replaced. Most likely, this repair can be completed after the reverse mortgage closes with a repair set-aside.
Now for the inside of your home. Water heaters must have double straps and smoke alarms must be installed in locations that meet local code and in working order. It is likely you will be required to have a carbon monoxide detector. Check walls, ceilings and floors for water stains, holes and large cracks. Make sure you attic access is clear of clutter as the appraiser must enter the attic at least to his shoulders. Is your attic insulated and ventilated? Are there any rotted support beams or structural problems. How about your heating and AC system, does it work and heat all the rooms in the house? Are all of the light switches and plugs working and is there any frayed or exposed wiring that needs to be fixed? Check your plumbing fixtures to make sure they all work and don't leak. Verify the water pressure is adequate when more than one fixture is on.
For a detailed explanation of FHA appraisal guidelines, click here for HUD.gov handbook.
If you have specific questions about whether your home will qualify for a #reversemortgage in your state, call Maggie O'Connell at 800-684-9438. Going into a reverse mortgage transaction with confidence is key to a successful transaction. Specific guidelines may vary in each state or county and we are licensed in all 50 states to serve you. With locations in Danville #reversemortgagecalifornia and Reno #reversemortgagenevada