If you have opted to apply for a reverse mortgage on your home, you are most likely to be one of the multitudes of senior citizens, having retired with much less financial security than you had expected. Hence the last thing you want to have is to get your reverse mortgage from an unscrupulous company.
It’s a harsh reality that reverse mortgage scams are aplenty and it is a common experience that reverse mortgage companies charge people very steep application fees and then inform them that they have been turned down for a loan.
Where To Get Trustworthy Reverse Mortgage Companies
If you’re dealing with reverse mortgage companies that ask for a ridiculously high percentage of the prospective reverse mortgage amount (5-10%), just to commence the application process, don’t move further till you have verified their records with the National Reverse Mortgage Lenders Association. It lists its authorized reverse mortgage companies state-wise. You can also get free information on reverse mortgage companies at the HUD (Department of Housing and Urban Development) website.
The NRMLA was set up in 1997 to supervise the reverse mortgage industry in the US. Its website is a goldmine of information. You can get all that you need to know to apply for a reverse mortgage. There are answers to frequently asked questions, regarding the reverse mortgage process, and a reverse mortgage calculator that lets you decide how much money you are likely to get in a reverse mortgage loan.
The NRMLA has also prepared a Code of Conduct that every reverse mortgage company must accept prior to being approved by NMRLA and finding a mention on their website. Their Code of Conduct states that authorized reverse mortgage companies should be sensitive to the specific requirements of senior citizens, and should not take undue advantage of their unfamiliarity with the reverse mortgage process.
When You’re Ready To Go Ahead
If you have decided to go ahead seriously with your reverse mortgage options, go to the NRMLA website and browse through the listings of reverse mortgage companies operating in your home state. This will let you shortlist those companies closest to you, and once you get about a dozen or so, you can contact them telephonically.
Fix appointments with them to have detailed discussion regarding their financing terms. Talk to people you know who have already taken a loan with any local reverse mortgage companies, find out their experience and satisfaction with the process.