According to a recent survey conducted by Harris Interactive, 40% of homeowners do not compare different lenders when obtaining a home loan. Â From this information, it is safe to assume that these consumers are also dropping the ball when it comes to searching for reverse mortgage lenders. Â
What is even more startling is that 96% of consumers claim to shop around before purchasing other products and services. Â If most consumers know the importance of comparison shopping, why are people so lax when it comes to choosing mortgage lenders? Â While some consumers may not want to go to the trouble, others are probably unsure of whether their choice of reverse mortgage lender will really impact their loan. Â Consumers might also avoid shopping for a lender simply because they do not know how to do so.
Does a Borrower's Reverse Mortgage Lender Really Make a Difference?
A person's choice of reverse mortgage lender can significantly impact his or her loan. Â Interest rates, origination fees, closing costs, and others fees all vary by lender. Â Choosing the right reverse mortgage lender might make the difference between accepting an expensive loan and getting a great deal. Â
Different lenders also offer different loan products. Â Currently, most lenders offer Home Equity Conversion Mortgages (HECMs) which are insured by the Federal Housing Administration (FHA). Â With these loans, the most a borrower can receive is $625,500, even if the home is worth significantly more. Â To get a jumbo or proprietary reverse mortgage, borrowers must look for lenders that offer these loans. Â Since jumbo reverse mortgages are not as common, borrowers will be more limited in their search for a lender.
Borrowers' choice of lender will also affect the quality of their borrowing experience. Â A reputable lender is one that takes the time to answer questions and keep borrowers informed throughout the loan process. Â Reputable lenders do not pressure or force borrowers to purchase other financial products. Â If, at any time, borrowers begin to feel uncomfortable or pressured, it might be time to begin exploring other options.
How to Choose a Reverse Mortgage Lender
Searching for the best reverse mortgage lender does not mean that borrowers should apply with as many lenders as possible. Â In fact, since borrowers must get their homes appraised during the loan process, working with several different lenders can get expensive. Â Shopping for a reverse mortgage lender means simply asking the right questions and recognizing a good deal.
While applying for a reverse mortgage, borrowers should make sure that they understand the costs associated with these loans. Â Before deciding to accept a loan, borrowers should be clear on their different options, the long-term costs of the loan, and the potential disadvantages. Â If a borrower is concerned over certain fees or aspects of their loan, it is always a good idea to discuss the issue with one's lender. Â Actively choosing a lender and staying informed throughout the loan process is the best way to get a great deal on a reverse mortgage loan.
What is even more startling is that 96% of consumers claim to shop around before purchasing other products and services. Â If most consumers know the importance of comparison shopping, why are people so lax when it comes to choosing mortgage lenders? Â While some consumers may not want to go to the trouble, others are probably unsure of whether their choice of reverse mortgage lender will really impact their loan. Â Consumers might also avoid shopping for a lender simply because they do not know how to do so.
Does a Borrower's Reverse Mortgage Lender Really Make a Difference?
A person's choice of reverse mortgage lender can significantly impact his or her loan. Â Interest rates, origination fees, closing costs, and others fees all vary by lender. Â Choosing the right reverse mortgage lender might make the difference between accepting an expensive loan and getting a great deal. Â
Different lenders also offer different loan products. Â Currently, most lenders offer Home Equity Conversion Mortgages (HECMs) which are insured by the Federal Housing Administration (FHA). Â With these loans, the most a borrower can receive is $625,500, even if the home is worth significantly more. Â To get a jumbo or proprietary reverse mortgage, borrowers must look for lenders that offer these loans. Â Since jumbo reverse mortgages are not as common, borrowers will be more limited in their search for a lender.
Borrowers' choice of lender will also affect the quality of their borrowing experience. Â A reputable lender is one that takes the time to answer questions and keep borrowers informed throughout the loan process. Â Reputable lenders do not pressure or force borrowers to purchase other financial products. Â If, at any time, borrowers begin to feel uncomfortable or pressured, it might be time to begin exploring other options.
How to Choose a Reverse Mortgage Lender
Searching for the best reverse mortgage lender does not mean that borrowers should apply with as many lenders as possible. Â In fact, since borrowers must get their homes appraised during the loan process, working with several different lenders can get expensive. Â Shopping for a reverse mortgage lender means simply asking the right questions and recognizing a good deal.
While applying for a reverse mortgage, borrowers should make sure that they understand the costs associated with these loans. Â Before deciding to accept a loan, borrowers should be clear on their different options, the long-term costs of the loan, and the potential disadvantages. Â If a borrower is concerned over certain fees or aspects of their loan, it is always a good idea to discuss the issue with one's lender. Â Actively choosing a lender and staying informed throughout the loan process is the best way to get a great deal on a reverse mortgage loan.
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