Steps to a Safe Reverse Mortgage
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When you are looking into a reverse mortgage, there are some steps that you can follow in order to protect yourself and guarantee a safe and successful outcome.

STEP 1: Learn how reverse mortgages work.

Reverse mortgages offer you unique benefits as a senior. It is essential that you first gain a solid understanding of how they actually work. This will help you to understand the many types of reverse mortgage options that are offered. Then you will be able to decide which one of those options will work best for you and your financial situation. You can find information about reverse mortgages on this website, on other Internet sites, and in brochures available from HUD as well as various lenders.

STEP 2: Decide if a reverse mortgage is right for you.

While it is always a good idea to seek advice from others, remember that it is ultimately your home and your choice. Advice from family, friends, and other advisors is helpful, but be certain that in the end the decision is actually yours and one that you are happy with.

STEP 3: Find an authorized reverse mortgage counselor.

One of the required steps for obtaining a reverse mortgage is actually an important safeguard for you. A reverse mortgage counselor will be someone who specializes in counseling senior citizens who are considering this important financial step. They can answer any questions you might have and help you to fully understand all aspects of the decision you are making. If for any reason you feel uncertain about the advice and answers that you received from your counselor, you always have the option of a “second opinion” from another counselor to help you.

STEP 4: Make your own choice about how to use your reverse mortgage funds.

Just as the decision to get a reverse mortgage is ultimately yours alone, so is the decision on how to spend that money. You may choose a practical option such as supplementing your retirement income, covering medical or home repair expenses, or investing the money.

You may also decide to buy yourself something new such as a car, take a dream vacation, or help out a grandchild with their education. Whatever you decide to do with this money, remember that it is your money that you earned by investing in your home. If anyone tries to tell you that there are limits to how you can spend your money, don’t believe them.

STEP 5: Insist that your reverse mortgage payments go directly to you.

Remember that this is your money as the owner or owners of your home. Even if you are planning to eventually give all or some of the money to a relative, you should always have the funds delivered to you first. That ensures that you retain control of your money and have the right to change your mind in the future if your circumstances change. Your first goal should be to protect yourself. Under no circumstances should you let anyone convince you to sign over your reverse mortgage funds.

If you follow these simple steps, you are sure to end up with a safe and secure reverse mortgage.

Learn more about Reverse Mortgages >>