There is no book reverse mortgage for dummies but having some general knowledge when talking to your loan counselor will help ease your fears.
Don’t Get Scammed
- Shop around and compare at least two offers to protect yourself. Check the companies reputation with the Better Business Bureau.
- Make sure a reverse mortgage vs. HELOC is right for you.
- Don’t wait until the last minute when you’re desperate for money. A reverse mortgage loan application can take 4 to 12 weeks to complete.
- Avoid purchasing other investments from your lender. Stay focused with a reputable company and work separately with a financial planner for investments.
- Caution if you’re told to get major home repairs. Your home must be safe and functional. Hire licensed contractors for any work needed not associated or recommended with the lending company.
- Do not sign anything that you do not fully understand.
- Make sure to attend the closing in person to ensure proceeds are given to you and not someone else.
- Care with fraud by relatives, caregivers or financial advisers. Don’t hesitate to come forward and report fraud by contacting the FBI or Housing and Urban (HUD) to report fraud.