Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
Working with a reverse mortgage counselor is one of the requirements of borrowers that wish to gain access to a reverse mortgage. During this counseling process, the counselor is going to cover a variety of different topics. Here are some of the questions that you might hear during a session with a reverse mortgage counselor.
1. Do You Understand How the Program Works?
It is the job of the counselor to make sure you understand everything about the reverse mortgage program. They are going to quiz you to make sure that you understand the basic process that is involved. If you do not understand part of the program, they will make sure that you understand it before you leave the session. They will explain how the lender is going to make regular payments to you in order to purchase your home's equity. If you have any questions about how the loan program works, be sure to ask the counselor at this point.
2. Why Do You Want a Reverse Mortgage?
The counselor will also want to know why you want to get a reverse mortgage. It is important that you understand how the reverse mortgage program works and whether or not it is a good option for you. If you do not have a legitimate reason for obtaining a reverse mortgage, the counselor might question your motives. It is their job to determine if a reverse mortgage is in your best interest and in the best interest of the lender. If you cannot justify why you need a reverse mortgage, they may recommend that you avoid one.
3. What Is Your Financial Situation Like?
At some point in the counseling session, the counselor will want to know about your financial situation. It is their job to evaluate your financial situation and determine whether you will be able to benefit from a reverse mortgage or not. They are going to want to look at financial records that show them how much money you make, how much your payments are, and what assets you might own. They will look at all of the information in order to gain an understanding of your financial picture.
4. Have You Considered Alternatives?
It is also the job of the counselor to make sure that you have considered your alternatives. There are many different alternatives when it comes to accessing your home-equity and a reverse mortgage might not necessarily be the best choice for you. After looking at your financial situation and your motives, the counselor might be able to recommend something else that would work better for you. The counselor is not an agent of the lender and they will not push the reverse mortgage loan on you if it is not in your best interest. Therefore, they might get you to look at a home-equity loan, a home-equity line of credit, or some other program that could help you more than a reverse mortgage could.
- Short Selling a Rental Property
- 3 Warning Signs of Loan Modification Scams
- What Lenders Don't Reveal About Home Equity Loans
- 3 Reasons Banks Reject Short Sales
- Alternatives to Getting a 2nd Mortgage
- Second Mortgages: Advantages and Disadvantages
- Appraisal Basics
- Home Equity Loans for People with Bad Credit
- 3 Common Short Sale Mistakes