-
Before contacting a single lender, become an informed consumer. Educate yourself
about reverse mortgages. Read the articles on this website and check out our
recommended links. Try AARP's online calculator to check whether you are
qualified and for how much.
-
The final step to take before talking to a reverse mortgage lender or filling out an application
is to meet with a HUD-approved counselor. The government requires you to obtain
a certificate showing that you have been counseled prior to processing your loan
application. The counselor is allowed to charge up to $125 for the
meeting, but the fee may be waived depending upon your situation. The
HUD website
provides links to approved counseling agencies.
-
When you're ready to select a lender, give heavier weight to those that have experience with reverse mortgages in San Diego. The
process is different than for forward mortgages, so it's best to go with lenders
familiar with the procedures. Our listings show the number of HECMs
(government-backed reverse mortgages) that were successfully completed by each
lender between October 1, 2007, and September 30, 2008 in the local area.
-
Find out if the lender is a member in good standing of NRMLA (National Reverse
Mortgage Lender Association) or the BBB (Better Business Bureau). These
associations require members to abide by a code of ethics. See the
NRMLA and
BBB
websites for more information.
-
What is the lender's local
Better Business Bureau rating? Determine whether
there are serious unresolved complaints.
-
Although national banks are (relatively) safe and familiar, you may find better
terms with a broker who represents products from several lenders.
-
Different types of lenders (banks, savings and loans, mortgage brokers, etc.)
are regulated by different government agencies. Find out which goverment agency
regulates the lender and check online to find out if there are any serious
unresolved complaints. You can often find this information on the company's
website. For example, the website may include the lender's license number or an
FDIC logo. If the lender is regulated by the state, use California's handy
multiple-agency license search at
www.dre.ca.gov/gen_lic_info.html. To contact federal regulators about
nationwide companies, go to
www.dre.ca.gov/cons_who_to_call.html.
-
Check out the professionalism of the company as evidenced by its website. When
was the website last updated? Does it include a license number? Does it name its
government regulating agency? Does it require you to provide your contact
information in order to search the website? Does it include biographical
information about key executives who would be overseeing your loan? Is the
contact information up to date?
-
Try emailing or calling someone at the company. How long does it take for a
response? Remember that salespeople tend to be more responsive before any papers
are signed.
-
Once you have narrowed your choice to your top three, ask for phone or in-person
meetings with their most experienced HECM agents.