The information available online today is vast. A great deal of this information can help us and a large portion of it can actually harm us. The Internet is packed full of web sites that allow you to learn a great deal about obtaining a home loan. Yet, when it comes to a reverse mortgage, picking your lender is not your first step in the process.
The people who are trained for handling reverse mortgages are referred to as HUD-approved, Fannie Mae or Financial Freedom counselors. Reverse mortgages are very personal loans. They are not the same as a loan you would get when purchasing a home for the first time or even refinancing it at some point in time.
The good news is that the people you’re going to talk to specialize in these types of loans. They are trained to understand exactly how to help you get the best type of loan for your personal circumstances.
Most times your needs will fall into the category of the HUD-approved counselor. If you are looking for a Home Keeper or Cash Account type of loan, then you will want to get the Fannie Mae or Financial Freedom counselor. For all other types you’ll want to seek out a HUD-approved councelor. The wonderful thing about a HUD-approved counselor is that these people are trained to have your interests at the top of the list. Not the banks. It is you who they are going to be working hard to please, leaving out any personal opinions or ulterior motives that give them some type of backend referral fee.
For those of you who feel an independent spirit rising in your blood, the fact is every homeowner is required to acquire the aid of the approved counselor. The most common objection is that of money. No worries, these services are most often free of charge. The most you may expect to pay is $50.00 to $75.00. Make sure you check around as a little research may uncover the freebie.
Earlier I mentioned how this loan was more personal in nature. Due to the more personal nature of this loan, you will find your counselor will be asking questions that can be somewhat alarming to some. Especially in times where our financial information is something to be highly guarded due to indentity theft. Questions like, “How old are you, what’s your health like, what’s in your bank account?” Financial probing is never any fun, but in this case, be honest. Although there will be personal questions about your finances, you don’t have to worry about them asking you about any personal habits or preferences like, “Do you like Coke or Pepsi?” or how many times a week you sneak out to eat a Jack burger. The thing to remember is that every question they are asking you is for your benefit. All of this information is kept between you and your counselor. Sort of like the doctor patient relationship. They aren’t going to pass this information on to anyone else. It is simply to help them personalize your loan to suit your needs.
Lastly, you may want to bring along a close family member to help you sort out the details in case you find yourself a little short on memory. And it’s nice to have the moral support if you find yourself a bit stressed about sharing all this personal information with a complete stranger.
A reverse mortgage in years past used to be a very bad idea. Things have changed greatly and today you can expect to be happily surprised at the vast majority of advantages in the reverse mortgage loan. Talking to a HUD-approved counselor can open your eyes to the wonderful ways you can use the equity in your home without actually having to sell it and move out. To learn more about reverse mortgages visit, http://reversemortgageproscons.com and discover the types of loans available as well as the advantages and disadvantages.
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