By: David Prulhiere

Quite a few mistakes are made when a person looks into getting a reverse mortgage. We are going to cover three of the huge ones that will have a long-term effect if you do not address them upfront.

Mistake 1: Not comprehending them before continuing.

If you don’t comprehend the mortgage, how do you comprehend if it is right for you? If you can’t get a mortgage loan officer to explain it to you, in a way you have an understanding of, then find a new mortgage officer. Too many occasions a senior citizen is a number of years into a reverse mortgage and all of a sudden they have concerns that should have been discussed in the mortgage loan process.

Mistake 2: Moving too promptly and not getting very important information.

This kind of goes together with the above comment. If you move too quickly, you might not get the full comprehending of what you are doing. Do not let a salesperson push you, so they can get paid sooner. Take your time; make sure you are familiar with the details of your mortgage loan and get all of your questions answered.

With that being said, reverse mortgages are not supposed to be complicated. Even if you don’t have a financial background you should have enough knowledge to comprehend the basics.

Mistake 3: Not moving promptly enough and missing out on opportunities.

This feels like a contradiction of the comment above, but it’s not. There are no tricks in a reverse mortgage. So if you are curious, spend some time checking out the details, but make it a priority for a few days. If you do not fully understand it after that, your mortgage officer is likely not doing a very good job of outlining it to you.

In addition to the loan officer, you will have a neutral 3rd party called a counselor that is going to answer any questions you may have. It is mandatory in a reverse mortgage so make the most of this resource.

We have just talked about a few of the mistakes usually made in the mortgage loan process. Don’t forget that reverse mortgages aren’t designed to be complex, so you should have the ability to get the details and make an well-informed decision within a matter of days, not months.

Far too aften mistakes are made when applying for a reverse mortgage, but don’t let it happen to you. Get all the information on a reverse mortgage you require for free, online. Do some research now and you won’t regret it. It will pave the way to a happy, care free, independent, retirement.

Article Courtesy of Free Links Submit.Com

While visiting agents at open houses almost every Sunday afternoon I will usually bring up the fact that in addition to residential mortgages, I help seniors age 62 and older with reverse mortgages. It usually gives me the opportunity to answer a few questions or clear up some mis-information about reverse mortgages. Then I mention that a reverse mortgage can be used to purchase a new home, at which time I am met with blank stare and the response, “you can?”

Yes you can. For a mortgage product that has been in the market for over a year now, the news has not gotten around very fast. In fact, HUD has been very surprised in the number of purchase HECMs that buyers have applied for. They thought, and I thought this would be something that many seniors would take advantage of. So if you are one of the many who don’t know about the HECM purchase, let me give a quick summary.

The obvious one everyone should know about is the HECM purchase works similar to the regular HECM product in that it is for seniors, age 62 and older.  If it is a married couple, then the younger of the two is the one who needs to qualify for the loan. (It can work for the older of the two but I’m not getting into that today.) Second, it will take a large down payment, usually anywhere from 40% – 50% down depending on the age of the buyer. The older you are, the less you need to put down. The funds for the down payment must be verified and available to use. Money can not be borrowed and you may not use a credit card or other means to come up with necessary cash. The home must be your primary residence (you spend at least 185 days per year in that home.) Eligible properties include: SFR, Condo, 1 – 4 units and new construction. Did you see what I just saw? 1 – 4 units? That’s right. Think about this scenario: a senior is looking for a new place to live and a way to supplement their income.  What about purchasing a duplex, living in one unit, renting out the other unit, and not having to make mortgage payments as long as they live there. Sweet!

But you may be asking, why use a reverse mortgage at all? Here are some of the top reasons someone may use a reverse mortgage for a purchase.

• No income qualification. With all the new regulations in lending, a borrower on a fixed income, but with a large amount of money for a down payment may still not qualify for a mortgage. It’s happening all the time. We used to get exceptions to this situation through automated underwriting all the time, but not any  more. (There are some instances where an underwriter may want to make sure a borrower has enough income to pay taxes and insurance, especially if they own a second home somewhere else.)
• Low FICO scores will not prevent you from getting a reverse mortgage.
• Keeping cash on hand. As opposed to an all cash purchase, put half down, get a reverse mortgage for half, and keep the rest available for emergencies or just to have as a reserve.
• Buying bigger. A buyer has a budget for their all cash purchase, but they just aren’t finding anything in their price range. Boost their buying power by adding a reverse mortgage and practically doubling their purchase power without having ever make a mortgage payment.
• Divorced, widow or widower may have limited resources and/or income (and often times credit issues) to purchase or qualify for a traditional mortgage. A reverse mortgage could open new doors.

I think you’re getting the picture by now. Again, this is just a quick a summary, but hopefully enough to get you thinking. If you have some questions, just get in touch with me and we’ll talk.

Reverse mortgages shift gears – San Jose Mercury News.

If you are 62 or older and thinking about purchasing a new home, call me to discuss the benefits of using a reverse mortgage.  Contact me at jerry@jerryheintze.com or visit my website at www.reversemortgagesintucson.com.

Future Valuation Problems For Reverse Mortgages.

For more information on reverse mortgages visit my website at www.reversemortgagesintucson.com or contact me at jheintze@sunstreetmortgage.com

Reverse mortgages are making a big difference the the lifestyle of our seniors.  Read what a difference it made to 64 year old Dee Lewis.

If you have more questions about a reverse mortgage or would like to find out what a difference it could make in your life, contact me today or visit my website Reverse Mortgages in Tucson.

Is a Reverse Mortgage Right For You?

Online, ‘a Reason to Keep on Going’ – NYTimes.com.

If you want to learn more about the benefits of reverse mortgage and how they can help improve your lifestye, (and possibly get you a computer and get online), check out my website at www.reversemortagesintucson.com. If you just want to talk about retirement and how your retirement can be improved, I would love to talk to you about that as well. Call me at 520-975-7322.

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Sorry About The Inheritance, Kids – Retirement Finance – Annuities – WSJ.com.

For more information about reverse mortgages please visit my website at www. reversemortgagesintucson.com or email me at jheintze@sunstreetmortgage.com.

The independent online survey, conducted with United Sample, Inc. (www.unitedsample.com)in partnership with Golden Gateway Financial, polled a nationwide representative sample of more than 500 senior citizens aged 62 or older.

via Press Releases – Golden Gateway Financial.

For more information about reverse mortgages and how they can benefit you, please visit my website at www.reversemortgagesintucson.com,

The Associated Press: World’s 65 and older population to triple by 2050.

For more information about reverse mortgages please visit my website at  www.reversemortgagesintucson.com, or email me at jheintze@sunstreetmortgage.com.