What should happen at your reverse mortgage closing?

Before you go to closing, your Loan Officer should have given you a copy of the closing documents for the state you live in. If you did not receive this for your review, you should request them.

Another document you should receive before attending your closing is a copy of the final HUD Settlement form. This will give you the actual charges being assessed for your reverse mortgage loan. It should be close to the Good Faith Estimate you received at application. If it isn’t, this would be a good time to question your Loan Officer on the differences. You can still back away from the loan at this point if you are not comfortable with the responses to your questions or concerns about the differences in charges. You should receive this form at least 24 hours before closing.

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Recently I had the pleasure of helping a couple in California obtain a reverse mortgage. Living in a home valued at 3.6 million, one has to wonder why would they need a reverse mortgage. Actually, their financial adviser made the recommendation.

Their financial adviser wanted to ensure that this couple had the additional financial resources to perhaps pay for home care, gifts to their children and for investing. Actually, the ability to provide gifts to their children was the main focus. Since it’s very expensive to live in California, they saw no strategy in leaving their home to the heirs. They preferred their children to reap the benefit of these monies sooner rather than later. With a reverse mortgage, they could leave their other investments intact. After the adviser’s due diligence, Wells Fargo and I were chosen to provide this loan.

Yet another example of how a reverse mortgage fits the bill even when one’s financial portfolio is significant. This was a wonderful validation from this financial planner that a reverse mortgage can be another valuable tool as an investment option.

>> Another success story concerning reverse mortgages in Denver