Reverse Mortgage Counsellors
These days there is a counselor for just about any specific requirement we have in our lives, reverse mortgages are no different and there are people who have trained specifically to advise others in reverse mortgages. Let’ s just recap what a reverse mortgage is. In fairly short terms a reverse mortgage is you gaining access to the equity in your house that is repayable by you as a standard equity loan or not until your death when your estate is sold. Reverse Mortgages have become more common in the past 20 years.
A reverse mortgage counselor is a requirement for you to have consulted when you decide to take out a reverse mortgage. These counselors are required to provide you with frank unbiased advice that includes telling you the pitfalls of these loans. Depending on your requirements some people will just want to hear the facts, ask the odd probing question or two and then make their own mind up. Other people will be more reliant on seeking the advice of the counselor on what should they really do, whilst this can give you more confidence this type of loan is what you need, remember at the end of the day you need to make the decision as you will be the person that needs to pay for the loan. A reverse mortgage counselor is known as a HUD counselor, these counselors need to be HUD approved, this is important as you will not be able to get a loan if you have sought advice from a non HUD approved counselor.
The good financial news is that many reverse mortgage counselors operate free of charge and of course there are those that do charge a fee. These fees are cap to around $130 and it is a good idea before you engage a counselor that you ask what type are they, do they provide their service for a fee or is it free. If it’s a fee paying service then you pay them at the time of the counseling or it can be included in your loan. When you go for an interview it is always a good idea to bring along a trusted friend or relative who can give you a second opinion of the information being provided and also ask questions you may not have thought of. A second perspective is always useful in these types of sessions. This is in fact encouraged by counselors so don’t worry what the counselor may think, they already support you in this. Be prepared to be asked a lot of personal questions during your counseling session, these sessions are usually about 1 hour but check when you make the appointment.. These questions will be about your finances, your family, lifestyle, health and you home. Be very honest in your answers as you want fearless and frank advice from your counselor on whether a reverse mortgage loan is the right loan for you. Any information you provide them is totally confidential and is not provided to anyone else.
