The ‘Who,’ ‘Which’ and ‘What’ of Reverse Mortgages…
When it comes to reverse mortgages, the who and which are extremely important. They determine which reverse mortgage product and which lender best fit the client’s needs and situation. The trick is to disclose everything, to the best of your ability, to your client.
It’s the way I work.
I, not only, want them to be comfortable with me as the liaison to their lender, I also want them to trust that I have their best interest in mind. I go over every document with my clients because they should be aware of what they’re signing.
The Total Annual Loan Cost, which pertains specifically to the reverse mortgages, is the equivalent to the Annual Percentage Rate, both of which have Truth in Lending as a legislation and regulation centerpiece. An article by the Mortgage Professor, “Can Government Help Borrowers Make Better Decisions? TALC is Typical,” stresses the importance of the TALC and asks two fundamental questions of borrowers looking for lenders to supplement their mortgage or reverse mortgage.
The “which” and “who” are questions that I have considered before and everyone should.
The “which” is, essentially, which type of reverse mortgage program available best fits the clients’ needs and compliments their personal financial situation. For instance, a borrower looking to save for the future would not consider monthly tenure payments suitable because they don’t want to spend their reverse mortgage just yet. Instead, they might chose the line of credit option, where they have control over how much and when they use the funds, while the unused portion continues to grow monthly.
If there is something I’ve learned from my years of experience is that no two clients will bring the same things to the table. For example, no two clients will have the same amount of home equity or will be the same age. These are questions to consider, initially, to be able to fit your client’s needs.
The “who” refers to the loan provider who will give them the best deal on the type of mortgage they chose.This is the reason I love being an independent reverse mortgage broker. I have more lenders at my disposal than a bank or company, meaning, I can analyze and assess my client’s situation and determine which lender will best suit their needs. Each lender has a set a guidelines they abide by so that if one lender doesn’t work, another might.
A bank, for example, has a primary lender, and if the client’s situation doesn’t fit into their guidelines, that client will, most likely, be rejected. At PS Financial Services, a reverse mortgage company in Florida, I have the added benefit of using more than one.
If you think a reverse mortgage is right for you, let us know at PS Financial Services by calling (888) 845-6630 or sending us an email at info@PSReverseMortgage.com. We do not pressure those who inquire.