Getting something you care about evaluated under a microscope doesn’t always sound appealing—but when it comes to reverse mortgage loans, the appraisal process is both essential and beneficial. Not only is an appraisal required by lenders, it also plays a key role in determining how much funding you may be eligible to receive. The good news? The process is straightforward and easy to navigate.

Step 1: Start with Your Application

Once you’ve spoken with a qualified reverse mortgage specialist and decided to move forward, you’ll submit your application. From there, the lender will arrange for a professional appraiser to evaluate your home. The appraiser will contact you directly to schedule a convenient time for the visit.

Step 2: The Three-Part Appraisal Process

The appraisal itself involves three main stages: the inspection, the research, and the final report.

Inspection

During the scheduled visit, the appraiser will walk through your home—often taking photos and notes about features that contribute to its value. If any issues are spotted, such as needed repairs, they may also be documented. This gives you a heads-up on anything that could impact the appraisal and possibly a chance to correct it.

Research

After the visit, the appraiser will dig into various data sources to help determine your home’s current value. This research typically includes recent home sales in your area, multiple listing services, tax assessor’s records, and other relevant public data. These details help paint a complete picture of your home’s market value.

The Final Report

All findings from the inspection and research are compiled into an official appraisal report. This document includes photographs (if taken), property details, and comparable sales. The report is submitted to your lender, who will provide you with a copy along with updated reverse mortgage figures based on the appraised value.

Get Ready in Advance

You can take simple steps to prepare your home for an appraisal and make the process even smoother. For helpful tips, check out my article on how to prepare your home for an appraisal [click here].

Understanding the Bigger Picture

A reverse mortgage is a unique loan available to homeowners age 62 and older, including married couples. It allows you to tap into your home’s equity while eliminating monthly mortgage or loan payments. Funds can be accessed in various ways: a lump sum, monthly payments, a line of credit, or even to purchase a new home.

If you’re considering your options, talk with your reverse mortgage specialist. Together, you can explore creative solutions tailored to your lifestyle, financial needs, and future plans.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.