If you are a senior citizen looking for a Reverse Mortgage in Johnson, Rhode Island, then this site will help you with some tips on making sure that you have the cheapest, safest, and fastest Reverse Mortgage. The Reverse Mortgage is an equity loan that will provide the borrower with funds for retirement; however there are no monthly payments and no credit or income requirements. For any questions you would like answered immediately, call Toll Free 1-888-973-8377.
Step 1: Know the value of your house.
– The most important factor for individuals in Johnson looking for a Reverse Mortgage is whether their home value is high enough to do a Reverse Mortgage. The only requirements to do a loan are that you are over the age of 62 and own your home. However, if you have a mortgage, it needs to be low enough that the Reverse Mortgage can pay it off in full. This will remove your monthly payments and make the home safe from default or foreclosure. In this mortgage market crisis, and current recession, home values have fallen and it is very important to have a good idea of what your home is worth, before doing a Reverse Mortgage.
There is a Reverse Mortgage Counseling fee and an appraisal fee which will be paid before the loan closes. Counseling is a service that will ensure that you are aware of how a Reverse Mortgage works, and that you have had all your questions answered. They will give you a certificate for attending, which is mandatory. The appraisal is done by your lender to verify the value of the property. It is important to remember that even Lenders that do not charge for this appraisal fee up front, will be forced to charge you if the home under appraises and the loan cannot be closed. Not knowing could cost you for the counseling fee and the appraisal of the home, if the loan does not go through.
Step 2: Use an online Reverse Mortgage Calculator.
– These are very useful tools that help explain your situation without having to submit any personal information or waste your time with unnecessary information. This should be every Johnson, Rhode Island customer’s first step, but never your only step. Having an appropriate level of mortgage will be the basis of whether or not you can go forward with the loan since your home cannot have any other lien or mortgage attached to the home once the loan closes. This calculator will basically tell you whether or not to contact a Reverse Mortgage Lender for questions and an accurate quote. The calculator will tell you if you are close to being able to go ahead with the program. You can find a free an accurate Reverse Mortgage Calculator HERE.
Step 3: Contact several lenders for quotes.
Even though you home is in Johnson, the Reverse Mortgage is government regulated program. The HUD and the FHA manage the interest rates and the fees involved with this program. However, you can still find big differences in the loan values of lenders from place to place. It is like the same car is available in several dealerships; however they might all have different incentives for you to buy with them. The Reverse Mortgage is no different.
Preferable situations you will want to inquire about: Whether or not they charge for an appraisal up front, what are their title fees, will they match origination fees with other lenders, will they reduce their monthly service fee, and can you use your own title company? These are questions you should ask every Rhode Island or local Johnson lender because it can result in saving up to thousands of dollars for you.
Step 4: Learn about appraisals.
If the real estate market in Johnson is anything like the real estate market across the USA, the most important aspect of your Reverse Mortgage will be the appraisal value. All Reverse Mortgage Lenders will conduct a new appraisal and that value will be the amount the loan will be based on. It is important to understand those appraisals are very strictly regulated by the HUD and the FHA. You will most likely not be able to use any appraisal that was not ordered by your lender and that was not done extremely recently. It is also important to know that most appraisals done, even as little as a year ago, could be very different today.
Knowing these things will be very helpful in judging whether or not a Reverse Mortgage is right for you. Contact friends, Johnson real estate professionals, and utilize online services such as Zillow.com to research your current home value. Also, get a very specific idea of any current mortgages you have. This will give you a very good idea of your ability to close a Reverse Mortgage.
Step 5: Research your lender and loan officer
Every Johnson Lender these days has a website, a toll free number, and most are listed in the Better Business Bureau and the National Reverse Mortgage Lenders Association (or NRMLA). When you have found a lender in Rhode Island that you like, have been presented with an estimate, and have decided to move forward, you will want to verify the lender’s and Loan Officer’s credentials before filling out your application.
The easiest ways to do this are to contact the HUD, either through their phone number (202) 708-1112 or their website (www.HUD.gov). They can verify if your lender is valid. You should also contact NRMLA and check any complaints lodged against them (go to www.ReverseMortgage.org). However, the most useful thing to do when searching your lender or loan officers’ background is to do a Google search on them. You can see their advertising, the length of time they have been on the internet, and their reviews. Other customers’ reviews on your loan officer can be very illuminating and should aid in your decision to go with a certain loan officer. For more questions about this or any other aspect about the Reverse Mortgage, please call Toll Free: 1-888-973-8377.