Reverse mortgages have become a popular lending option for seniors who are looking to increase their level of financial freedom. As with all loan products, though, it can sometimes be difficult to find a reverse mortgage lender that you feel that you can trust to give you a good deal and not weigh you down with hidden fees and other costs. Finding a reputable reverse mortgage lender can take some time, but the time that you spend looking for the best lender for your reverse mortgage loan will save you both money and hassle overall.
Visit Local Lenders
The first thing that you should do when trying to find a reputable reverse mortgage lender is to visit some of the banks and other lenders that you are familiar with in the area in which you live. Make sure that you visit any bank where you hold a savings or checking account, as they may be willing to give you a better deal on your loan as an incentive for customer loyalty. You should also visit the bank or mortgage company through which you financed the purchase of your home; since they may be willing to work with you to help you get the most out of a reverse mortgage loan now.
Take Advantage of Online Information
The internet can be a great tool for researching reverse mortgage lenders, and may give you access to additional lenders who operate solely online for purposes of reducing their business overhead. You can find out more information about the lenders that you are considering and the specifics of their reverse mortgage loans, and may be able to locate additional lenders in your local area that you weren’t previously aware of. An additional benefit of using the internet to conduct research in order to find a reputable reverse mortgage lender for your loan is that you will be able to find this information quickly and at any time without having to visit each lender during business hours.
Contact the Better Business Bureau
One useful method of telling whether a reverse mortgage lender is reputable is to contact your local Better Business Bureau to see if there are any complaints filed against them in your area. You should keep in mind that even if there are one or two complaints on file against a lender, this doesn’t automatically mean that they aren’t trustworthy; most businesses receive complaints filed against them at one point or another. Make sure to read the complaints and weigh whether they seem to be legitimate, and also discuss the complaints with someone who works at the Better Business Bureau to see if they have any additional information on the lenders that you are considering. You might also want to contact your local Chamber of Commerce as well and ask them similar questions, as the Chamber of Commerce will likely have had direct dealings with most of the lenders in your area at one point or another.
Listen to the Opinions of Others
If you know anyone who has taken out a reverse mortgage, ask them about the lender that they used in order to get an idea of what their experience has been like. Many people who have borrowed money from a lender will be more than willing to share their experiences and let you know whether or not the lender has provided them with good service and reasonable loan rates. You may also wish to consult local forums on the internet in order to see if people in your area have any recommendations or warnings for you, though you should always keep in mind that some of the responses that you get may have a personal bias behind them and as such should not be your only source of information.
Shop Around and Compare Offers
Take the time to visit or contact a number of the reverse mortgage lenders that you are considering and ask them for information about their reverse mortgage products. Request interest rate quotes, sample loan terms, and ask for any other information they might be able to provide on the loan that you are considering. Compare the interest rates on the various loans in order to see which lenders offer the best deals on reverse mortgages, and also carefully read the sample loan terms for these lenders in order to find out of there are any hidden fees or other expenses that might make your loan cost more than it appears at first. Cross-reference these quotes with any positive or negative recommendations that you might have received, making sure that you give yourself sufficient time to make an educated decision in regards to the lender that you eventually choose.
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Lisa Parker is a freelance writer who focuses on specific topics in the mortgage industry such as reverse mortgage.
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