Lots of mistakes are made when a person looks into looking for a reverse mortgage. We should be able to cover three of the substantial ones that will have a long term effect if you don’t address them upfront.
Mistake 1: Not understanding them before proceeding.
If you do not have an understanding of the mortgage loan, how do you fully understand if it is right for you? If you can’t get a loan officer to explain it to you, in a way you comprehend, then find a new mortgage officer. Too many times a senior is a number of years into a reverse mortgage and suddenly they have concerns that should have been talked about in the mortgage loan process.
Mistake 2: Moving too swiftly and not getting essential information.
This kind of goes together with the above comment. If you move too quickly, you won’t get the full understanding of what you are doing. Don’t let a salesperson hurry you, so they can get paid sooner. Take your time; make sure you fully understand the details of your mortgage and get all of your questions answered.
That said, reverse mortgages are not supposed to be confusing. Even if you don’t have a financial background you should have the capacity to comprehend the principles.
Mistake 3: Not moving promptly enough and missing opportunities.
This may seem like a contradiction of the statement above, but it’s not. There are no tricks in a reverse mortgage. So if you are curious, spend some time going through the details, but turn it into a priority for a few days. If you don’t have an understanding of it after that, your mortgage loan officer is normally not doing a very good job of describing it to you.
In addition to the loan officer, you will have a neutral third party called a counselor that will be able to answer any questions you may have. It is required in a reverse mortgage so take full advantage of this resource.
We have just discussed a handful of the mistakes sometimes made in the mortgage process. Try to remember that reverse mortgages aren’t intended to be confusing, so you should have the ability to get the details and make an educated decision in a matter of days, not months.
When thinking about reverse mortgage, get as much knowledge that you can. There’s a great deal of information on a reverse mortgage available on the web without any obligation or commitment needed. When you have educated yourself enough to fully understand the concerns you want to ask, then contact a loan officer.
