Taking out a Home Equity Conversion Mortgage (HECM) loan can be a good financial move for you. One of the things you’ll have to pay attention to, though, is hiring the right lender. Here are a few tips on how to pull that off:
Make a list
It won’t be easy trying to find the best HECM lender for you, one that provides you with all the best deal and offers. At least, not until you make a list of prospective lenders.
Research a lot
Don’t skip the legwork. Identify the banks and lending companies in the business. You could also go online and look up lenders on the National Reverse Mortgage Lenders Association, or NRMLA, says Investopedia. Get their contact numbers and start asking around.
Trim it down
Filter your list. You can reach out to people in your circle who have already taken out a reverse loan. Ask for recommendations or suggestions. That should help you with your search. You could also check out the sites of the companies. If there’s anything misleading onsite or if their content doesn’t seem helpful at all, you could take those as signs that you need to move to the next one on your list.
Talk about your expectations
Ask about what the experience is like, as well as for tips on how to make the most out of the loan. You’ll feel so much better after realizing that the loan has worked well for other people too.
Assess lenders
Once you’ve considerably narrowed down the list, it’s time to start taking a closer look at all the companies that made the cut. Make sure you compare rates as well as costs.
Considering what’s at stake—the equity of your home—it’s only right that you make the most out of this decision. A good lender will certainly see you through this, every step of the way.
