When it comes to reverse mortgages, finding a lender can be a bit of a challenge. Here’s how to make sure you pick a good one:
Ask around
If you know anyone in your circle who’s had to use the services of a reverse mortgage lender, then ask them about their experience. Some just use the service as a way for a quick cash. They then pay off the loan before it can roll over to the next, saving them fat interest rates. If you’re in the same boat, it helps to ask and consider if it’s the right one for you or not.
Read the terms and conditions
Always know what you’re getting into. It might seem tedious and boring, but better knowledge of the terms can help you make a better decision for you, your spouse and your heirs.
Ask questions
Don’t understand a phrase or condition or term? Don’t let the lender go without having those questions answered and any issues clarified. It doesn’t matter if you rain down a hundred questions onto the reverse mortgage lender. It’s crucial to know what you’re signing up for and how it can impact your life and those of your family.
Review your alternatives
A good lender will ask you if you want to consider other alternatives, says the National Consumer Law Center. So if the lender keeps pushing you to make a decision about that reverse mortgage or HECM loan, that could be a big red flashing sign that you need to cut your losses and look for help elsewhere.
Shop around
The best way to find a good lender is to always shop around. Look until you find a few good lenders to add to your list and then compare everything they offer–from costs and discounts to other services. That should help you find the best one. Visit the website for more information.
