Considering A Reverse Mortgage

January 21, 2020

Considering A Reverse Mortgage

If you are close to retirement and consider taking a reverse mortgage and not sure what all this means? In the simplest term, a reverse mortgage is a loan. Homeowners who are near retiring age typically 62 or older may be qualify for a reverse mortgage loan. What this typically mean is that the borrower will take out a loan against the equity of their home. The borrower will receive funds on scheduled fixed payment or a lump sum cash. The attractiveness of a reverse mortgage is that the borrower does not have to make any loan payments. Upon the death of the borrower, the loan amount becomes due, the home is sold, or person moves away.

Why borrowers elect for a reverse mortgage?

A reverse mortgage can provide a borrower a much-needed boost in cash for seniors who are living on a fixed income. In most cases, the largest investments people are buying a home, and most of their investments in tied up in the value of their home. In the golden years of retirement, seniors may not want to draw cash from investments as a means to protect their savings or assets. Since a reverse mortgage provides a steady stream of income, retirees can hold off on drawing from their retirement until it makes sense to do so. Reverse mortgage can offer seniors some financial relief and as a supplement to their income.

Before applying for a reverse mortgage get your financial documents and records together

Applying for reverse mortgage can be a daunting task. You will need to submit multiple copies of financial records and identification records to apply for a reverse mortgage. Here are common documents you will need to provide:

  1. Copies of driver’s license or state issued ID.
  2. Social security cards for all individuals who are applying.
  3. Property tax receipts or records.
  4. Social security payments
  5. Copy of property title and deed.
  6. Copy of death certificate of a spouse if applicable.
  7. Copies of all financial documents.
  8. Copy of any legal documents such as trust, power of attorney, etc.

As you can see the process of applying for reverse mortgage can require providing more documents than applying for a traditional mortgage. Obtaining these documents can be difficult if you don’t know where to search or who to contact, our certified field agents are trained secure these types of financial records to save you time and energy. Searching for these documents may require tracking down a company that you might have forgotten or might not be aware of. As you make your decision to determine if a reverse mortgage is right for you financially, let our professional work to get you the documents you need. Call and speak to a specialist by dialing 714-632-3480 to discuss how we can help you.