What to expect from reverse mortgage counseling

You can’t apply for a Home Equity Conversion Mortgage (HECM) without getting advice from an approved housing counselor. So what should you look for in a counselor? Use the following guide to get the most out of your reverse loan counseling session.

• A reverse mortgage counselor is there to help you learn more about reverse mortgage guidelines, but ultimately the decision to borrow money is up to you. You should never feel pressured to apply for a reverse loan.
• Reverse loan counselors must be pass a HECM exam approved by the Department of Housing and Urban Development (HUD), and must receive continuing education. Make sure that anyone claiming to be a reverse loan counselor can prove that he or she has the proper credentials. You can check the HUD Web site to find an approved counselor.
• Even if a counselor has been approved by HUD, try to check out that person’s reputation. You want someone who is trustworthy and is looking out for your best interest. Check with your local housing agency or organizations that help seniors in your community to find someone reputable.
• The counseling session can take place in person or by phone. If you receive counseling over the phone it may be require more than one session.
• Find out what kind of fees they charge and what services are provided. It’s important to have access to your counselor when you need it. Take time to shop around and compare fees and services (if the fees present a hardship you can get your counseling for free) before selecting someone to work with.

Getting a reverse home mortgage is a significant financial step. It’s important that you get as much information as possible about reverse mortgage guidelines before signing up for a loan. A knowledgeable counselor also will discuss alternatives to reverse mortgages that might help your situation.

This entry was posted on Monday, October 25th, 2010 at 5:40 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.