THINGS TO KNOW BEFORE APPLYING FOR REVERSE MORTGAGES

As more and more baby boomers are reaching retirement age, they are turning their sights on additional ways to supplement their incomes. In many cases, social security and pensions are just not enough to make ends meet. One of the ways that is becoming increasingly popular is through a reverse mortgage.
Although there are several rules and procedures to follow in applying for a reverse mortgage, once you know what is required the process isn't that difficult. Here is a look at the major steps involved to apply for a reverse mortgage.
It's important to understand that getting this type of loan isn't like walking in and applying for a home equity loan or other type of personal loan. The federal government has laid out certain guidelines and stipulations to follow or your application will be rejected.
1. To get started you will want to familiarize yourself with as much information on reverse mortgages as possible. Things like what they are, what they can do for your individual situation, etc. You can find this information online at our website and many others as well.
2. The second step will be to get the required counseling. The federal regulations mandate that you get credit counseling through an approved association. AARP reverse mortgage credit counseling is by far and away the most popular, but there are many others available as well.
This credit counseling will go more in depth on reverse mortgages and go over all the details and options. You'll discover how they will affect you personally as well as your estate. Although it may seem like a lot of red tape to go through, the counseling is actually quite good and really helps give you a great understanding of this type of financial transaction. You'll know you are making a well qualified and sound financial decision.
3. Now it is time to find a bank or other lender that will make a reverse mortgage loan. Don't rush this step. Applying for a reverse mortgage is a major event and you want to be sure you find the right lender and the right program.
Don't be surprised if this takes 6-8 weeks to complete. You will be asked when applying on how you want to receive payments. It can be a lump sum, monthly installments or even a line of credit if you like.
There will also be closing costs involved with a reverse mortgage loan so keep that in mind. The good news is that these costs can be included in the loan amount if you wish.
Understanding the steps required in applying for a reverse mortgage will help give you the information you need and make the process much easier to complete.
By the way, you can find out more about Applying For A Reverse Mortgage as well as much more information on everything to do with reverse mortgages at http://www.ReverseMortgagesA-Z.com