If you’re short on cash and in a situation where your home equity is the only saver? Many homeowners end up in situations where they don’t have any other practical way to raise cash for their living expenses. So, they end up taking out a reverse mortgage.
Reverse mortgages are simple and smart ways for homeowners, especially the elderly, to unlock the equity they’ve made in their homelands. Plus, they manage to maintain ownership and live in the home for as long as they need. A reverse mortgage can come with many unique and beneficial qualities for homeowners and seniors, such as no requirement for interest and principal payments. This is very helpful for older people who have done many investments in their homes but need a bit of enhancement to their retirement finances.
Do you believe that a reverse mortgage could be the right option for you? Maybe you want to learn more about the application process so you’re in the right place. This guide is for you to learn the process of applying for a reverse mortgage, which is simple and comfortable. It’s never been easier to access the capital you have grown in your house during the years.
How Much Could You Get?
To find out how much you could qualify for, you can use the free calculator. All you need to do is provide some basic information about yourself, such as your age, phone number, and a slight idea of how much your home is worth.
Of course, you could skip this step and speak directly to a customer advocate, as they can provide you fast and reliable information over the phone.
How To Apply?
You can apply by giving a call to the mortgage company and speak to one of the experienced customer advocates. They’ll answer all of your questions about how reverse mortgages work and if this is the right option for you. The customer advocate will gather some information about yourself and your home but don’t worry; it’s a short over-the-phone process, it’ll take about 10 to 15 minutes.
It’s essential to know that you don’t have an obligation to share any personal information regarding yourself and your home address over the phone. But it’s best to know that all the information collected it’s just for making an informed final decision. Next, the mortgage company team will review your information on the application field and determine whether you’re qualified for a reverse mortgage and how much you’re qualified for.
And, another part of the process is that the advocates may need to conduct a home valuation. If this is required, then it will be organized and paid for by the company upfront. Don’t worry; you won’t get any money out of your pocket. After the process, the customer advocates will call you and share the results.
What Happens If You’re Approved?
If you get approval, the customer advocates will send you an email, or a letter, which will framework the amount available to you, the terms and conditions, and other important information. If you feel like you’ve waited for too long until you’re received your final answer, it’s because the customer advocates usually take the time needed to review your application and ensure that they made the right decision by approving your application for a reverse mortgage.
Also, they want to ensure that they give you enough information about how reverse mortgages work so that confusion won’t be encountered in the long run. Of course, you have the right to view the documents with your family, advisors and make sure that a reverse mortgage is indeed the right solution for you. This action shouldn’t be a decision to make in a rush because you’ve taken years to do hard work and gather your home equity. Taking out a reverse mortgage means that you’ll spend most of your home equity on loan fees and interest.
Getting Advice From A Lawyer: Is It Worth It?
In some states, each customer looking to take out a reverse mortgage must first get legal advice from a lawyer. This is done because you must fully understand the process of a reverse mortgage. Also, you must contact a lawyer that isn’t affiliated with the mortgage company, so you get truly autonomous advice. However, this is the least important aspect you should be worried about, as customer advocates will be happy to provide you a list of lawyers to choose from.
Once you start working with the lawyer, you will receive the mortgage documents and review them carefully. Ensure that they’re in the right order for you, and then you can speak with the advocates and set up a time for a meeting to discuss any further questions you might have. Think twice, and make sure that this is the right decision for you. And remember, you’re still under no legal obligation to enter into a reverse mortgage until you sign up the documents.
Thinking about how to pay the lawyer? Most of the lawyers’ costs are subtracted from the reverse mortgage once it’s proceeded, so there’s still nothing for you to pay.
Access Your Equity
Once you’ll receive the approval and sign the required mortgage documents, you’ll be able to choose a date to receive the funds in your bank account. Then, the whole process is completed! You can start paying for your home renovations, keep up with the weekly expenses, pay for a dream vacation, help your children to make a payment for a home, and so on.
Reverse mortgages aren’t ideal for every homeowner, but this doesn’t mean that it’s a bad deal either. Even if it might be an expensive option, it may be the best for your current situation. The choice is completely yours, as now you’re in control. If you believe that you’re eligible and that a reverse mortgage could be the right decision for you to offer financial flexibility to your family, then wait no more: Call the mortgage company anytime and get more information about a reverse mortgage.