If you want to get a reverse mortgage, know that you will be required to do a counseling session in the process. Here’s what to expect from this hour-long session with a third-party counselor.
Why Reverse Mortgage Counseling?
The purpose and intent of the counseling session is so that the counselor can understand what the client’s needs and desires are and to offer a variety of solutions to help them accomplish those goals most effectively. To avoid any possibility of bias, One Reverse Mortgage licensed specialists do not do the counseling. However, they can recommend several counselors and you, as the client, are given the option to choose which one you would like to work with.
What Will Counselors Go Over?
Counselors are legally obligated to go over certain topics, including the advantages and disadvantages of each loan option. The counselor must also go over the client’s responsibilities of the loan, including the obligation to continue to pay property taxes, homeowner’s insurance, and maintain the home to avoid foreclosure. As far as closing costs and fees associated with closing the loan, the counselor must also go over what those specific costs are, which loan fees will be the same for each lender and which will differ from lender to lender.
You will also have the opportunity to ask questions throughout the session and get anything cleared up that you are unsure about. Keep in mind that this counselor is not associated with One Reverse, and their intent is to protect you as the consumer. They want to make sure you know this is the correct decision for you, and that your decision is based on facts.
What Happens After Reverse Mortgage Counseling?
You can expect a call from your licensed specialist. You will receive a certificate at the conclusion of the counseling, and a signature is required. It is important to know that anyone who intends on signing any documents at the closing must attend the counseling session and sign the certificate. The signed certificate verifies they attended the session. Once you’ve received your certificate, it is valid for six months, and once the counseling is complete, you can continue to move forward in the process of the reverse mortgage.