Follow these five simple steps to make sure the reverse mortgage lender you choose will do a good job for you.
How To Choose A Reverse Mortgage Lender
1. Finding a Reverse Mortgage Lender in Your Area
One of the easiest ways to start your search for a reverse mortgage lender in your area is to use an online search tool. These tools are free of charge and free of obligation. You provide just a small amount of basic information. Then, a list of reverse mortgage professionals in your area are displayed along with their contact information.
2. Calling Reverse Mortgage Lenders
You should contact more that one reverse mortgage lender to compare their costs and services. It is a good idea to let the reverse mortgage lender know that you are calling and comparing. This way the loan agent knows to give your the best offer from the start. Ask each of the lenders you talk with to provide you with a Total Annual Loan Cost Disclosure (TALC).
3. Comparing Reverse Mortgage Lenders
Once you have spoken to a few reverse mortgage lenders, and have TALC disclosures from each, sit down and look at each deal side by side. This would be a good time to involve other family members or friends you trust. If you know someone who would be objective and knowledgeable, sit down with him or her to review the different TALC disclosures.
4. Deciding on a Reverse Mortgage Lender
Going with the least expensive reverse mortgage deal is a good choice as long as your are comfortable with the loan and the lender. Obviously you want the reverse mortgage costs to be reasonable. But you may find that the deals are pretty similar. If this is the case, choose the lender who seems the most ethical and the loan agent who is most responsive and considerate. Ultimately you want someone who is concerned with meeting your needs and not just making a buck. Customer service is very important. You need someone who returns your calls or email quickly.
5. Start Your Application And See a Counselor
Your reverse mortgage lender will give you an application package and a list of items you need to provide. You will also likely need to meet with a reverse mortgage counselor. HUD provides a list of approved mortgage counselors on its Web site. By following these five simple steps, you are on your way to solving your cash flow problems using a reverse mortgage loan.