A reverse mortgage is usually a mortgage loan that is secured over a residential property which enables the owner to access the value of the home with no financial liability. It allows older homeowners to borrow from their own home’s equity without the need to make any monthly payments for the mortgage. The Reverse Mortgage Colorado helps spread the knowledge about a reverse mortgage.
How to Qualify for a Reverse Mortgage
It’s very simple to determine if an individual qualifies for a HECM Reverse Mortgage. The minimum basic conditions one needs to qualify for a reverse mortgage include;
- An individual should be more than 62 years old
- An individual should have sufficient equity in his/her home
- An individual should reside in that house as his/her primary place of residence.
Choosing a Reverse Mortgage Lender
Always Work with a Specialist – When deciding which reverse mortgage to choose, it is important to consult a specialist to help one in making this big decision. It is important to know which percentage of their business will be the reverse mortgage program.
Check References & Testimonials – This usually provides the needed proof. It is important to know what other individuals experienced when they were getting their Reverse mortgage. It will also help in choosing the best reverse mortgage lender.
Find a Loan Officer That Has a CRMP – A CRMP or a Certified Reverse Mortgage Professional assures an individual that the person he/she is working with has proven track record and has taken the right steps to be considered as a leader in the mortgage industry.
Find a Loan Officer Who Can Advise After the Loan Closes – A good loan officer should be available for other follow up questions even after the loan closes. This will help in guiding an individual about the reverse mortgage even further.
Myths About Reversal Mortgage
- The following are some of the common myths associated with Reverse Mortgage.
- Both spouses must live in their home to qualify for a reverse mortgage.
- Reverse Mortgages only work if an individual already has a home.
- One no longer owns a home, but the bank or government does.
- The home must be free and clear to qualify.
- You no longer need to pay property taxes.
- The kids or heirs won’t inherit the home.
A reverse mortgage is a great idea for old homeowners. They benefit the homeowners since they can stay in their homes and don’t necessarily have to move.