The Role of the Counselor in a Reverse Home Mortgage ...................................................................................................................................................................................................................... As with any loan, there are certain requirements that you must meet as a borrower for a reverse mortgage. You must be at least 62 years old, you must own your property, and you must live in that home as your primary residence. In addition, your are required to take part in a consumer counseling session where you will receive information and be able to ask questions of a counselor that has been approved by the U. S. Department of Housing and Urban Development.
The requirement that you meet with a reverse mortgage counselor is actually designed to protect you. This is an opportunity for you to make certain that you have been educated as a consumer about all the ramifications of your decision to acquire a reverse mortgage on your home. It is also a chance for you to ensure that you are making a fully informed decision and that you have found the program that best meets your needs.
The meeting with the counselor is actually not a difficult requirement. To begin with, your lender should provide you with a list of counselors. Then, when you contact the counselor, you can actually have the session conducted over the phone or in person, whichever is more convenient and comfortable for you.
When you do have your session, it’s a good idea to have any notes, documents or information that you have been given by your prospective lender with you so that you can refer to them. The counselor will then review with you all of the requirements for eligibility in the reverse mortgage program. They will also make certain that you are aware of all of the financial repercussions of the reverse mortgage you are considering. They will also discuss with you any alternative options that you may have. If you have not yet found an FHA- approved lender, you can ask your counselor for a list of these lenders. Finally, the counselor will make certain that you understand all of the circumstances under which your reverse mortgage would become due and require payment.
After you have completed the required counseling, you should be able to make a fully informed and independent decision about whether or not the reverse mortgage that you are considering will meet your needs. You may decide to pursue a different reverse mortgage option or to continue with the product that you have chosen. The key at this point is to remember that the decision is yours, and you are under no obligation to go through with the reverse mortgage option that you had previously planned on.
The important thing to remember about the role of the counselor in the reverse home mortgage process is to protect you. Because they work for an independent agency that has government approval, they have no personal investment in whether or not you decide to get a reverse mortgage or what type of loan you apply for. They are not affiliated in any way with any particular lender either. They are a truly unbiased party whose sole purpose is to assist you. Instead of looking at this step as a hassle, you should look at it as a bonus.
