Reverse Mortgage Guides
Applying for a reverse mortgage involves many steps in between considering lenders up to finally receiving the loan proceeds. Ensure that you are maximizing your options and protecting your best interests by learning the ins and outs of the whole process.
Reverse Mortgage Walkthrough
Below are several guides covering the application process for reverse mortgage and essential loan information that borrowers should know.
Requirements for a Reverse Mortgage
Reverse mortgage applicants need to meet certain requirements in order to be eligible for the loan. Generally, conditions have something to do with:
- The borrower’s age
- Liens made on the home
- Taxes and Insurance
Learn about these prerequisites to gauge your chances of qualifying for a reverse mortgage.
Important Reminders about Reverse Mortgages
As a borrower, there are certain rules that you must follow and obligations that you need to fulfill for the duration of the reverse mortgage loan. It’s important to take note of what these are to avoid unpleasant surprises and disputes along the way.
Steps in Getting a Reverse Mortgage
Applying for a reverse mortgage involves the following steps:
- Self Education
To make the loan application hassle-free, understand the details of each step and learn what to expect during each phase.
Settling a Reverse Mortgage Account
A reverse mortgage becomes due and payable when:
- The borrower passes away
- The property was sold or passed on to a different owner
- When the borrower lives outside of the home for more than 12 months because of a health condition
Learn the different ways to pay the loan back and what you can do if you need more time to settle the outstanding balance.
Discussing Reverse Mortgage with Senior Parents
Talking with your parents about reverse mortgage may be difficult, but this loan is worth looking into especially if they need more financial resources.
Depending on their particular situation, a reverse mortgage may or may not work best for your parents. To help determine if it is a smart move for them, you can educate them on what reverse mortgage is and how it works. Apart from that, be ready to provide answers to their likely questions about reverse mortgage.
Ways to Use a Reverse Mortgage Loan
The proceeds from a reverse mortgage loans are versatile, and can be used for almost any number of purposes in retirement. To name a few, you can use the loan to pay for home repairs, cover health and long-term care expenses, and settle credit card debt. Read on to learn more about the other ways to use a reverse mortgage loan.