Reverse mortgage counseling is an important step to take for Americans 62 years old and up and are considering taking out a reverse mortgage. Reverse mortgage counseling is done by counselors and professionals approved by the U.S. Department of Housing & Urban Development (HUD).
Why is reverse mortgage counseling important? For one, counseling will give you a bigger and better picture if taking out a reverse mortgage is good for your situation. Reverse mortgage counseling will also let you know if you need help in balancing your budget and staying independent for a longer time by connecting you to other agencies that can help you in your situation.
You may be busy and don’t have time to talk to a reverse mortgage counselor in person, and especially in this time of the COVID-19 pandemic, you can complete your counseling over the phone. Expect to be walked through how these reverse mortgages work, the cost you need to pay, pros and cons, and even the payment options and tax implications.
When you are done with your reverse mortgage counseling, you will be given a certificate. This certificate will form part of your loan application because lenders will require you to submit it to them before they can start your loan application process. You need to understand what you are getting into, the benefits, and the pitfalls; that is why going to a reverse counseling session is necessary.
You don’t have to worry about impartiality because reverse mortgage counselors don’t get anything from HECM lenders. Counselors are also not allowed to accept money or get referrals from reverse mortgage lenders. You will be charged for the service, and you pay for it when you go for counseling. But you can request for your payment to be delayed until such a time that you close your mortgage, and you can also request a discounted rate if you qualify, so don’t forget to ask the counselor about it.
If you need to know more about how reverse mortgage works, don’t hesitate to call us.