What You Should Ask Yourself Before Getting a Reverse Mortgage

Before applying for a reverse mortgage, these are three questions that you need to ask yourself.

1. Do I need a reverse mortgage?:

The first question you should ask yourself before obtaining a reverse mortgage loan is whether or not you need this loan. Truth be told, there is no right answer for this question. The decision to have a reverse mortgage is based on what you feel you may personally need or want to do with the funds. Reverse mortgages do not regulate how you can spend your money, which means that you can use it anywhere from paying for a new car or saving money for a rainy day. This loan is available to provide seniors over the age of 62 the convenience and flexibility of having extra cash flow come in so that they can continue to live comfortably in their home. If you feel that you can benefit from having a reverse mortgage, then maybe it is the right decision for you.

2. Can I qualify for a reverse mortgage?:

Because reverse mortgages are meant for a specific group of people, it is important to know if you meet the requirements to be eligible for the program.

1. Borrowers must be at least 62 years of age or older. *

2. You must own the home and live there as your primary residence.

3. There must be enough equity in the home for the loan to make sense.

* In August 2014, a new reverse mortgage program was released that enabled couples with a spouse under the age of 62 to be protected under a reverse mortgage. Previously, all persons on the loan must be at least 62 years old, and to bypass this rule, some couples removed the younger spouse from the loan. Unfortunately, this left the non-borrowing/younger spouse vulnerable to a foreclosure when the borrowing spouse passes away. However, with the new reverse mortgage program, the younger spouse is now protected and will be able to continue living on the property for as long as they want to. Read more about it here.

3.  Do I fully understand the reverse mortgage program?:

This question is probably the most important thing you need to ask yourself prior to applying for a reverse mortgage. It is important to take preventative measures to understanding how the loan works to ensure that you have a smooth process throughout the loan application process and when you receive your money.

You should also be aware of the requirements from the lender to prevent any possible foreclosure if you do not meet the conditions.

Reverse Mortgage Requirements:

1. Borrowers must continue to live on the property as their primary residence.

2. Borrowers must continue to pay property taxes and home insurance.

3. Borrowers must continue to keep up with the maintenance on the home.

Prior to applying for a reverse mortgage, all borrowers are required to go through a reverse mortgage counseling session with a third-party counselor. A third-party counselor should be able to speak with yo

about what you should know about reverse mortgages, or you could also ask your

Interested in doing a reverse mortgage? Our Senior Advisors are there to help you. Call them at 1-888-QUALIFY to see how this program can work for you.

 

 

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