What to Expect During HECM Loan Counseling
Seniors who are considering getting a HECM Loan need to be aware of all the responsibilities of these loans. While reverse mortgage loans are a great option, there may be other options that seniors need to consider. To ensure that seniors completely understand these loans, the FHA requires seniors to go through counseling from an independent third party.
Here are a few things you should know before your counseling session.
Counseling Sessions Should Not Take Long
The counseling sessions should range from 40 to 60 minutes. They are usually completed over the phone. The counselor should explain how HECM loans differ from traditional mortgages or loans. They will also make sure that you understand the differences between all the types of reverse mortgages.
Counseling Sessions Should be Unbiased
A counselor should not be persuading you to get a reverse mortgage or swaying you away from one. The goal of these counseling sessions is to be as unbiased as possible and to give the client all available details. This is why it needs to be done through an independent third party. A counselor needs to be sure that seniors understand all of their options.
Counseling Sessions Should be Easy
A good counselor will send you all the information you need before your session. They should be walking you through the information and the differences between the loans. For example, you may be interested in a HECM line of credit, but after your discussion you may realize that a HECM for purchase may be the best option for your situation.
We hope that your counseling sessions will go smoothly, and that you are fully confident when you decide to get a reverse mortgage loan.