There are plenty of unscrupulous lenders out there. Don’t make the mistake of signing up with one. Here are some of the best ways to tell bad lenders from good ones.
Any lender that seems intent on pushing a reverse loan on you isn’t entirely reliable. Don’t mistake enthusiasm for outright aggression. Stand your ground. Politely but firmly refuse. If they don’t listen, just walk away.
They don’t offer other options
Good reverse mortgage lenders will offer you a number of possible solutions or alternatives to help you make a better and more informed decision. If that’s not the kind of lender you have, you might want to look elsewhere.
They rush you
So you’re set on getting a reverse mortgage. But the lenders are in a rush to have you processed. Don’t go through with it. The Federal Trade Commission suggests that you make sure to have someone with you to read through the document. Another friend you trust can help you look over the agreement for any possible snags. If you have a lawyer, ask your lawyer to come with you. That way, the document can be checked for any legal loopholes. Make sure you plug any if you find them.
They don’t explain it very well
If they fail to provide you with a satisfying explanation of how the loan works or can’t even tell you about the cost or features of the loan, then they might not be the best company to consider for your mortgage. Find experienced reverse mortgage lenders who can provide you with all the information and assistance you need.
They don’t allow you to cancel
You have the right to cancel the loan without penalty within 3 days after the deal has been closed, so remember to ask about this. If the lender says this isn’t possible, you have all the more reason to get out of there before you sign anything.