Quite a few mistakes are made when a person looks into getting a reverse mortgage. We will be able to cover three of the major ones that will have a long term effect if you don’t address them upfront.
Mistake 1: Not understanding them before going forward.
If you don’t understand the mortgage, how do you know if it is right for you? If you can’t get a mortgage loan officer to explain it to you, in a way you fully understand, then find a new mortgage loan officer. Too many occasions a senior is a few years into a reverse mortgage and suddenly they’ve got questions that should have been mentioned in the mortgage process.
Mistake 2: Moving too fast and not acquiring vital particulars.
This kind of goes along with the above comment. If you move too fast, you will not get the full comprehending of what you are doing. Do not let a salesperson rush you, so they can get compensated sooner. Take your time; make absolutely sure you know the details of your loan and get all of your questions answered.
With that being said, reverse mortgages are not designed to be tricky. Even if you don’t have a financial background you should be able to understand the information.
Mistake 3: Not moving swiftly enough and missing out on opportunities.
This feels like a contradiction of the comment above, but it is not. There isn’t any tricks in a reverse mortgage. So if you’re curious, invest some time looking at the particulars, but make it a priority for a few days. If you don’t understand it after that, your mortgage officer is more than likely not doing a very good job of outlining it to you.
In addition to the mortgage loan officer, you will have a neutral third party called a counselor that is going to answer any questions you may have. It is mandatory in a reverse mortgage so make the most of this program.
We have just talked about some of the mistakes normally made in the loan process. Keep in mind that reverse mortgages aren’t designed to be complex, so you should be able to get the information and make an informed decision within 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.