You need a reverse mortgage lender who is reputable and can answer all of your questions. Find out how to select the best one in your area.
How To Choose a Reverse Mortgage Lender
Find a Reverse Mortgage Lender
The easiest way to search for a reverse mortgage lender is online. BestReverseMortgage.com has a lender search tool that can help you find someone in your area. Only reverse mortgage lenders that are experienced and reputable will be identified. Begin with your state and property type. There is no obligation. Find a reverse mortgage lender here.
Talk to at Least Three
It is important to talk to at least three reverse mortgage lenders. Even if all three offer the same reverse mortgage rate, you may find you communicate better with one over another. Your time is valuable. You should expect to have your phone calls and emails responded to promptly.
Each reverse mortgage lender you speak with should be able to disclose the deal offered in writing. Compare reverse mortgage rates and closing costs using a Total Annual Loan Cost Disclosure (TALC). A TALC disclosure allows you to compare various loan scenarios side by side. The potential costs are something like an Annual Percentage Rate (APR) on a traditional mortgage.
Ethics Are Important
Don't let any lender push you in a direction that makes you uncomfortable. Recent changes to reverse mortgage consumer protection rules make it necessary for lenders to avoid potentially unethical practices such as cross selling annuities or unrelated investments. Beware of false advertising. If something sounds too good to be true, check it out carefully.
The National Reverse Mortgage Lenders' Association (NRMLA) publishes a code of ethics that its members must abide by. Not all reputable reverse mortgage lenders are members. Ask the reverse mortgage loan agent you are interviewing if the lender is a member of the NRMLA. If not, ask them he or she has a code of ethics to follow.
Prepare to Meet a Reverse Mortgage Lender
To make the most of yours and the loan agent's time, be prepared. He or she needs details about your property including any mortgage balances. If you are planning on paying off high interest debt, such as credit cards or medical bills, you should collect copies of any bills and make a list of the debts by balance, monthly payment, and interest rate. Gather together any information you wish to share with the reverse mortgage lender. Include anything you think will help with planning your equity disbursements.
Educate Yourself
Visit the learning center at BestReverseMortgage.com. You will find the tab on the right side, about mid-way down, in the Reverse Mortgage Resource Center. There are articles on every topic related to reverse mortgages. Read and note any questions or concerns you may have. After reading through the articles, you will be knowledgeable and will get more out of your conversations with a reverse mortgage lender.
Renee Morgan
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