Reverse Mortgage Counseling is a requirement for all seniors seeking to obtain a reverse mortgage. Many seniors know they want a reverse mortgage and become frustrated when they are told they have this requirement before they can proceed.
The reverse mortgage is guaranteed by the Federal Housing Authority (FHA).
Because of some bad business being done by insurance and mortgage companies, the FHA is now requiring all seniors wanting a reverse mortgage to have counseling. The FHA wants to make sure that seniors understand what a reverse mortgage is and how it can affect them.
There are FHA certified counseling counselors who explain the reverse mortgage to the senior and answer any questions they might have. Once the senior has finished their counseling session, they are mailed a certificate certifying that they have finished their reverse mortgage counseling.
So, what should you expect? First of all, prepare for your counseling session by writing down in advance any questions you have regarding the reverse mortgage.
In addition, make sure you have the amortization chart and rate comparison forms to go over with the counselor. They will go over all the numbers and explain everything to you.
After you have the counseling session, make sure you call your reverse mortgage loan specialist and let them know. From here its a seven day period before services can be ordered. This includes title insurance, appraisal, credit reports, and anything else.
Once the seven days are up, those services can be ordered and the loan can proceed.
While a reverse mortgage is not for everyone, many seniors’ lives can be positively changed. Its best to talk to a reverse mortgage specialist to see if you would be a candidate.
If you have any questions about a reverse mortgage, please feel free to call me directly at 559-994-3692.