SO YOU KNOW YOU WANT TO PROCEED WITH A REVERSE MORTGAGE, BUT NOW YOU ARE TOLD THAT YOU MUST HAVE A COUNSELING APPOINTMENT. WHY?
First of all, the counseling is required by the U.S. Housing and Urban Development also known as HUD. The counselors must be approved by HUD before they can begin counseling seniors seeking a reverse mortgage. For a list of approved counselors click HERE.
WHAT SHOULD YOU EXPECT DURING YOUR COUNSELING SESSION?
The appointment will take about an hour. You can choose a counselor who will do it over the phone or one that does it in person. Some of the things they will go over are listed below:
1. Federal Housing Authority (FHA) their role and how your loan is insured and protected by them.
2. The counselor will ask if you received a packet of information from your loan officer. This packet includes a loan analysis and a lot of other pertinent information for your loan. The counselor will go over the numbers with you to insure that you understand how it works.
3. The counselor will explain interest rates, fees, and other figures to make sure you understand the expenses involved.
4. They will go over possible home improvement items that need to happen before an FHA loan can happen. FHA has certain guidelines and procedures that must be in place before the loan is finalized. For example, you must have the appropriate number of smoke detectors and carbon monoxide detectors.
5. You will be able to ask any questions to determine if this is the right thing for you.
The cost for counseling ranges from $99 to $300 depending on where you go.
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