Check out some our tips in understanding the Reverse Mortgage process.
- No Reverse mortgage loan officer should ever charge an application fee of any kind. The only upfront fees involved with a reverse mortgage are the fee for the counseling session (which is paid directly to the counseling agency) and the appraisal. Any other fees would be rolled into the loan.
- You should never be asked to pay in order to be referred to a loan officer or to obtain any information in regards to a reverse mortgage.
- No legitimate broker/lender will ever claim to work for the government. If one ever says they do please feel free to report them and their company to the Department of Housing and Urban Development.
- The Lender does not take the title to your home. A reverse mortgage is like any other mortgage in that sense. You always maintain the title to your home and the lender simply places a lien on your home…just like with a traditional home loan.
- No legitimate broker/lender will say they are a non-profit group
- Counseling is a very important and mandatory part of receiving a reverse mortgage. Counseling assists the borrower in truly understanding the product and how it works. Any broker/lender that downplays or tries to explain away the counseling aspect of the reverse mortgage process should be viewed as suspicious.
- A legitimate broker/lender should always look forward to answering all of your questions and making sure you understand all aspects of the reverse mortgage loan.