How To Pick a Reverse Mortgage Lender

Picking the right Home Equity Conversion Mortgage (HECM) lender is extremely important. And not an easy task.

Some companies hire big-named celebrities be their advertising faces:

“Hey! Magnum PI loves this company so you should too!”

Other companies spend a fortune in newspaper advertising to offer “education” seminars:

“Hey! Dozens of thousands of dollars in newspaper ads will make you LOVE us!”

Here’s the important thing you’ll not be told: ALL reverse mortgage companies are subject to the exact same strictly-controlled HUD/FHA requirements.

This means:

  1. All companies have the exact same loan programs (1 fixed and 2 adjustable).
  2. Calculation formulas for loan amounts and cash available are identical between lenders.
  3. Underwriting and approval criteria are identical between lenders.
  4. Closing and origination costs are carefully controlled.

The only meaningful exception is the origination fee. A lender can waive the fee or charge between $2,500 to $6,000 (depending on the loan amount).

That’s it.

So if the product and processes are the same, the only difference is the people. The person with whom you will directly be dealing makes ALL the difference in the world. If they are inexperienced, purely interested in the bucks they make, or given a high sales quota (to pay for that celebrity or big newspaper advertising buy), YOU can potentially suffer the consequences.

Bottom line: make sure you trust the person to whom you are talking and make sure they are carefully listening to what you want and need.

For more please call toll-free to (844) 287-0009, email us at Info@HECMSolutions.com, click the call link below, click the email link below, or click HERE for the Contact page.

Leave a comment

Your email address will not be published.


*