If you are looking to get a reverse mortgage on your home, it is essential that you shop around and find the best reverse mortgage lender for your situation. Reverse mortgages are relatively easy to qualify for, but the fact that they are complex loans that will require a long-term relationship with your lender means that you will need to find a reliable, reputable lender with employees who are willing to guide you through the process. After completing your federal reverse mortgage counseling, it’s time to find the right reverse mortgage lender for you. Here is your guide on how to find the best reverse mortgage lender, plus 5 signs that a lender is reputable.
Finding Reverse Mortgage Lenders
Just finding a reverse mortgage lender can be a bit of a challenge. Many lenders who do regular mortgages and personal loans don’t offer reverse mortgage services. Investment companies and insurance brokers sometimes offer reverse mortgages, and of course a federally backed reverse mortgage will be easier to find if you’re going with that option.
If you’re looking for a jumbo reverse mortgage, however, it will be more challenging to find a reputable lender. The federal government doesn’t back these sorts of reverse mortgages, so jumbo loans will vary wildly in reputability and the types of fees you will have to pay. It’s even more important to compare your different options if you’re pursuing a jumbo reverse mortgage.
Whether you’re looking at a federally backed reverse mortgage or an independent one, these 5 signs of a reputable lender should be your guide.
1: Good Customer Service
The first sign that a potential reverse mortgage lender is reputable is in their first impression. A good reverse mortgage lender will return your calls within a business day at most, explain your reverse mortgage options in plain and understandable language, and generally be personable and open. If they seem to be attempting to give you the runaround, then that is a warning sign that the firm is not reputable.
2: Explains Your Options
Good lenders will be able to explain your various options and explain why one option is superior in your situation to another. If a reverse mortgage lender seems to be pressuring you into one particular path without presenting incredibly convincing reasons, this is a sign that they may not have your best interests financially at heart.
3: Asks the Right Questions
The right reverse mortgage for you depends on a variety of factors. Your estate-planning strategy, how long you expect to keep the property, and your reasons for seeking a reverse mortgage should all be taken into account. If your potential lender isn’t asking about these important factors, they may be more focussed on making the sale than on doing what’s best for their clients.
4: Flexible to Your Terms
If your potential lender seems inflexible to reasonable requests, such as getting you loan documents early or communicating by your preferred method, then this is a red flag for inflexibility in other areas. You want a reverse mortgage lender who will operate on your terms and in your comfort zone, putting your interests first.
5: Reviews are King
Any reputable reverse mortgage lender will have a multitude of reviews from clients and other sources available. Looking into these reviews will ensure that you are able to see patterns in other experiences with that lender, allowing you to make an informed decision. A high rating combined with a high number of reviews means that your potential lender is probably a reputable one. For example, All Reverse Mortgage, Inc. is one of the largest reverse mortgage lenders in the nation, and the their reviews number in the thousands and tend to hover around 4 to 4.5 out of 5 stars. This makes them one of the highest rated and most reputable reverse mortgage lenders out there.