Reverse mortgages offer many benefits, but they come with their own set of potential cons to go along with the pros. If you’re set on taking out a reverse mortgage, then you’ll need to find the right partner to help you throughout the experience. That’s why it’s important to find the reverse mortgage lender that suits you. Here’s what you can do to improve your chances of finding the best one:
1. Create a list
Know what companies are in the business. Do your homework by going to the National Reverse Mortgage Lenders Association or NRMLA. Or you can also check out the lender’s list of the U.S. Department of Housing and Urban Development, or HUD. This should yield better results than just going online and typing reverse mortgage in the search bar.
2. Filter the list
Work your way down the list by asking for recommendations from CPAs or other financial experts. Ask about the reputation these lenders have. If you already know someone who has taken out a reverse mortgage, then reach out and ask questions about the experience. Hear out their suggestions and recommendations. This can help you decide which lenders to get in touch with and which ones to avoid like the plague.
3. Consult other sources
If you don’t know anyone or can’t find anyone who knows about the companies on your list, then try the Consumer Financial Protection Bureau’s complaint database. Search for the lender’s name and if any complaints come up, you can read the details right along with the company’s responses. While this shouldn’t automatically be taken as a deal breaker, it tells you what to expect in case you get in touch with the companies and find out all the complaints happen to be true.
So, to make sure you get the most out of your mortgage, start by looking for the right lender.
