There are about 5,000 registered reverse active mortgage lenders in the country. Therefore, it is quite difficult to choose the lender you want to work with. Your choice of lender is bound to affect the overall affordability of the loans you acquire. Although some seniors are anxious to start the process of getting a loan, they should first look for the best reverse mortgage lender. It is unfortunate that majority of borrowers fail to shop around. Shopping around enables you to get the best deals.
Tips to help you choose
When you ask questions to the lender, you will get to know what the lender is offering. Consumers want to ask mortgage lenders various questions. You need to ask about the closing costs, interest rates, and other fees such as service charges and loan origination fee. You should note that these fees vary from one lender to another. Therefore, they are very important to discuss. If you believe you are being overcharged, you need to address your concerns with loan officers or start considering other reverse mortgage lenders.
To get an idea of how much reverse mortgage loan is likely to cost, the lender should be ready to provide you with total annual loan disclosure. The document you get will outline annual costs, which are associated with the loan you are getting. This will help a borrower know if the costs involved are affordable.
This is something consumers will always want to consider. Some of the payment options provided by lenders include cash instalments, lump sum, or credit line. They can also choose a combination of the above options. The borrowers decide to get the payment that affects the amount of money they get from their loans. This makes it quite important to discuss these issues with reverse mortgage lenders.
The best lenders are those that are approved and licensed by Federal Housing Administration. You should note that reputable lenders take their time to ensure borrowers get the best services. Depending on your financial situation and age, it is quite beneficial to wait before applying for the loan. For instance, you can withdraw more equity if you are a senior citizen as compared to younger borrowers. It is true that older borrowers and people in serious in need of cash are the ones that benefit from financial products. Lenders ought to discuss fees and avoid selling financial products to the borrowers.