If you are one of California’s numerous senior citizens nearing retirement with less financial security than you had ever imagined possible, you may be forgetting one of your most sizable financial assets – your home. If you have completed your mortgage payments, or almost there, you can mull over taking out a reverse mortgage loan.
A reverse mortgage loan offers you cash, a monthly payment, or a line of credit depending on your property’s appraised value. You may remain in your home and the loan does not need to be repaid until you sell the house or leave permanently. A reverse mortgage loan and a home equity loan are not the same, however, and the older you get, the more you can get from your loan.
Although a reverse mortgage loan appears too good to be true, there are steps you have to take when you apply for one. A lot of applicants for reverse mortgage loans are victimized by unscrupulous loan brokers or reverse mortgage lenderswho charge surprise fees for their services. Those unfortunate applicants only end up receiving a lot less money than they were expecting. At the end of the day, you just want to learn more about the process of getting a reverse mortgage loans so you know what you should look out for.
To qualify for a reverse mortgage loan, you have to be no younger than sixty-two. As mentioned previously, you need to be totally, or almost totally, done with all loans on the property.
Those who actually owe money on a current mortgage or home lien will be able to use their reverse mortgage loans to pay off that debt. But remember that reverse mortgage loans are binding, so you need to choose from no less than the best best reverse mortgage lenders because there will be no turning back.
Picking the Right Lender
To ensure that you will end up happy with your reverse mortgage loan, you must choose a trustworthy reverse mortgage lenders in California. Check the National Reverse Mortgage Lenders Association (NMRLA) website to know more about reverse mortgage lenders California. You just have to enter your state and you will get a long list of options available to you. The NMLA may well be the best place to look as all lenders on this site operate according to a strict Code of Conduct, which was made for the full protection of senior citizens.
As an added safeguard, it would be wise to have an attorney review your reverse mortgage loan terms before you sign any documents. Sometimes, seemingly small details can make a bigger impact than you think, and that is not the kind of surprise you want. Hence, asking for legal advice always comes in handy when you’re trying to decide on a particular reverse mortgage loan package.