The Home Equity Conversion Mortgage or HECM is a program under the Federal Housing Administration or FHA that allows you to convert some of the equity in your home for cash. And while it can be a good financial tool for you, there are risks that come with it. Therefore, you need to be wise about picking the right HECM lenders. Here are a few tips to guide you through that:
Make a list
Organization goes a long way. So gather the information you need and put the names of potential lenders on that list. Investopedia says you’ll probably see plenty of smaller banks in that list. Some might be companies you’ve never even heard of before. So do your research, then organize the results to help make it easier to choose.
Narrow it down
Once you’ve got a respectable list of options, it is time to work your way down that list. You can always ask friends and family for tips and suggestions. Going online can also help you find more HECM lenders.
Make an appointment
Ask for help from industry experts. They know what you need to pay and not, what the maximum amount for some services should be, along with a ton of other things you should know about. That’s all going to come in handy in avoiding sketchy lenders who might charge you sky-high fees, all entirely unethical and illegal.
Don’t be taken in by reviews
Reviews and testimonials look great on the site. But take them with a grain of salt. The best way to ensure that the company is a good bet is to look at their track record instead. If they have a history of satisfied clients, then that’s a good sign that you’re dealing with a legitimate company.
These are just a few key steps to finding the right lenders. Put them to good use, so you don’t miss out on good ones out there.
