7 Mistakes To Avoid When Getting A Reverse Mortgage

Here are the top 7 mistakes to avoide when shopping for a Reverse Mortgage.
7 Mistakes To Avoid When Getting A Reverse Mortgage

When choosing a Reverse Mortgage, it is important to not that there are several things you need to be aware of and here are the top 7 mistakes to avoid
when shopping for a Reverse Mortgage.

1. Using a Forward Loan Officer To Originate Your Reverse Mortgage

This is probably the most common mistake people make.  You want to work with someone who specializes exclusively in reverse mortgages.  A lot of the big reverse mortgage lenders solicit forward loan officers to do reverse mortgaegs.
They say they will help these inexperienced LO’s, but these loans take a lot more time than a normal forward mortgage and a lot of forward LO’s don’t
know what they’re getting themselves in for. 

For example, forward loans don’t have to verify a 2-year payment history of the home owners association dues, but RM’s do.  This requirement alone
can add days to the process because HOAs are notorious for changing management companies so the loan originator may need to call two or three different
management companies to piece together a two-year payment history.

2. Choosing An Inexperienced Reverse Mortgage Loan Officer.

This mistake is almost as bad as the first one.  I would not recommend working with an LO that has closed less than 20 loans.  For most reverse
mortgage LO’s during their first year, they’d be lucky to close 12 loans, let alone 20.  I know this sounds like it might be mean because everyone
needs to start somewhere, but you don’t want to be someone’s Guinee pig.  I’m not perfect, but I’ve probably closed over 800 RM’s over the last
16 years and have seen most scenarios.  Mobile homes, homes with acreage, homes in trusts, POA’s etc..

Also, because this business has a long sales cycle.  Loan officers talk with a lot of people and it takes some people months or even years to decide
to move forward with a reverse mortgage.  For this reason, there is a lot of turnover with new reverse mortgage LO’s.  If you work with a
new LO, will they still be around a year from now if you have a question?  What about five years from now?

3. Deciding On A Reverse Mortgage Too Soon After The Death Of A Spouse

Professional counselors say you should not make any big decisions within the first 12 months after losing a spouse.  Hopefully, you have a solid family
and can rely on them for help.  Even if you don’t have family nearby and you’ve got a plan in place that includes a will and life insurance that
will help cover expenses during the first year after losing a spouse.

Unfortunately, if you didn’t plan, you may need to have access to your equity a lot sooner than 12 months after your spouse has passed away.  This
just amplifies the first two mistakes that you must avoid.  If you must get a RM within the first year after losing a spouse, you need to find
someone who specializes in reverse mortgages and who has the experience to help you through this difficult time.  Also, I think it is extremely
important to find that person locally.

4. Not Using A Local Reverse Mortgage Specialist

A reverse mortgage is not a loan that you can get over the phone or the internet like some companies like to advertise.  This might work if you know
what you’re doing and getting a forward mortgage, but reverse mortgages are a different beast.  It is very important that you work with someone
local who will still be around 2, 3, 10 years from now if you have any questions down the road.

It’s always best to be able to meet the loan officer in person and feel comfortable with whomever you are working with.

5. Signing Forms Without Completely Understanding Them

This may sound like common sense, but when you’re going over the application package and are on page 40, you may just want to call “uncle” and give up.
This is where working with a local RM specialist is so important because whomever you are working with should be willing to answer any questions you
have, even if it’s the 3’rd or 4th time you’ve asked it.  The LO should try to explain it a different way that may help you understand it better.

But in that instance, it’s easy to be embarrassed because you know it’s been explained before but it just isn’t sinking in.  You still need to push
the LO to try to explain it so you can understand.

6. Signing The Application Before Doing The Required Counseling

Some lenders, especially out of state lenders, will send you the application before you’ve completed the counseling.  Reverse mortgages require that
you talk with an independent 3rd party before the lender can order the appraisal.  I say you have to do the counseling before you sign any application
forms.  In my mind, that’s the best way to do business.

The reason you are required to talk with a reverse mortgage counselor is because the LO get’s paid when you close the reverse mortgage, but the counselor
has no interest in you getting the loan or not.  They are a “disinterested 3rd party”.  Also, you should be the one choosing which counselor
you talk to.  In Colorado, you have the choice to do the counseling in person or over the phone.  Don’t let a lender ever tell you that they
will have the counselor call you. 

The problem in signing the application before you do the counseling is that the counselor may raise questions that you didn’t know you should ask the lender.
You don’t know what you don’t know.  Like we discussed in #5, you want to make sure you understand the forms completely before you sign them.

7. Not Shopping

Any time you are making a major purchase, you should shop and get at least two to three quotes.  Don’t go overboard and get 5 or 6 quotes.  I’ve
talked with people getting 5, 6 even 7 quotes and most of the time, I find these people are professional shoppers.  They just confuse themselves.

You want to try to get two to three quotes and try to get all of them within one week if possible.  When deciding who to go with you want the best
rates and costs and most money, but you also want to make sure you choose an experienced local reverse mortgage specialist to work with as well.

Picture of Bruce Simmons

Bruce Simmons

I absolutely love what I do - working with senior homeowners to help them live a more comfortable, flexible and secure retirement. I have the absolute best customers in the world, and even though I worked in the forward mortgage business for a number of years, I could never go back to doing conventional loans. I'm a 100% reverse mortgage specialist.

5.0

My wife and I are retired and had a mortgage that was quite high. We contacted Bruce regarding a Reverse Mortgage and were pleased with his knowledge and experience. He made the whole process very easy and explained everything along the way. Since then, I have had a couple of questions and contacted him regarding the RM. Bruce has always been very responsive and returned our calls within minutes. We couldn't be happier having used Bruce for the Reverse Mortgage and highly recommend him.

Bruce has been serving my interest over and above what one might expect during the whole process of handling my reverse mortgage dating back to 2010 and continues to be available at present whenever a question may arise. He is one of the most reliable, trustworthy and knowledgeable experts regarding reverse mortgages that I have had the privilege to do business with! I would highly recommend Bruce to anyone who is considering a reverse mortgage. Thank you Bruce!

I met Bruce from a referral who just love what he did for them on their Reverse Mortgage, So I contacted Bruce and told him my story and he came up with a great Reverse Mortgage for me and my needs and now I am living good and not worrying about Finances anymore. He had it done in a timely manner. If you are looking for the MAN to help you get the best Reverse Mortgage you need to call him and hope you let him help you.

Bruce is one of the most professional, knowledgeable and efficient experts I have worked ŵith ever in any field. He is fast to answer and always ready to help...and he's a great guy!

Gerald Cook
Gerald Cook
5.0

Bruce did our original reverse mortgage and has also refinanced it twice. He works hard to get the best deal possible while making it as easy for us as possible. When our first refinance received a low initial appraisal, Bruce helped the appraiser find better information and increase the appraised value. He's the best.

I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process. I interviewed several other people and he was hands down.....The only choice.

Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.

Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.

Best thing I ever did! Bruce Simmons at American Liberty Mortgage is the best. He is always there to answer your questions, and can easily explain the whole idea of a Reverse Mortgage. He takes the time and goes through the entire process with you. It worked out so well for me. Thank You Bruce!

We had researched Reverse Mortgages for 5 years and after hearing about Bruce Simmons and meeting with him, we finally decided to move forward with the Reverse Morgage. It has been over a year now and we are still very pleased with our decision. We think Bruce is very professional, knowledgeable and honest. Thank you, Bruce, for all your help.

I first met Bruce Simmons 2017. I found him on the internet. I was looking for someone local. I called him and explained I was only looking into doing a reverse mortgage, so I did not want him to think this was something I was ready to do. Bruce was friendly, very open about the basics of a reverse mortgage. Bruce came to my home and presented the figures and other details that he could offer. The first thing that impressed me was this was not a hard sell, more of a informational meeting. He was very open about all of the details, and answered my questions without hesitation. What really was evident was he was establishing a relationship with me, and I realized he knew I would not take the loan at that time. There was not enough equity in my home, and I would have to bring money to the table. Although I was not ready to do a loan, Bruce assured me he is always available for questions. Four years later, I finally did do a reverse mortgage, and I couldn't be happier with having done it. I have done away with a mortgage payment which allows me to fund my retirement account with that mortgage payment. We did some much needed landscaping with our cash out transaction, and will move on to improvements inside of the house. My reverse mortgage has a line of credit, and I feel sense security knowing it is there if I need it. Bruce explained that a reverse mortgage is not for everyone, but I feel certain that he paved the way for a strategy that worked for me. I will definitely do a refinance when the time is right. I will check in with Bruce to be sure what the benefits are when I do it again.

I have worked with Bruce Simmons for 15 years. Bruce is one of the best in the industry. He is extremely knowledgeable, kinds and detailed in what he does. His clients love working with him and trust him to help them with their Reverse Mortgage loans. I would recommend Bruce to anyone I know that is thinking about or wanting to do a Reverse Mortgage. He will always take very good care of the customers and make sure their needs are met! Class act and one of the best in the industry by far!

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John Addante
John Addante

Left us a 5 star review

My wife and I are retired and had a mortgage that was quite high. We contacted Bruce regarding a Reverse Mortgage and were pleased with his knowledge and experience. He made the whole process very easy and explained everything along the way. Since then, I have had a couple of questions and contacted him regarding the RM. Bruce has always been very responsive and returned our calls within minutes. We couldn't be happier having used Bruce for the Reverse Mortgage and highly recommend him.

Bruce has been serving my interest over and above what one might expect during the whole process of handling my reverse mortgage dating back to 2010 and continues to be available at present whenever a question may arise. He is one of the most reliable, trustworthy and knowledgeable experts regarding reverse mortgages that I have had the privilege to do business with! I would highly recommend Bruce to anyone who is considering a reverse mortgage. Thank you Bruce!

I met Bruce from a referral who just love what he did for them on their Reverse Mortgage, So I contacted Bruce and told him my story and he came up with a great Reverse Mortgage for me and my needs and now I am living good and not worrying about Finances anymore. He had it done in a timely manner. If you are looking for the MAN to help you get the best Reverse Mortgage you need to call him and hope you let him help you.

Bruce is one of the most professional, knowledgeable and efficient experts I have worked ŵith ever in any field. He is fast to answer and always ready to help...and he's a great guy!

I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process. I interviewed several other people and he was hands down.....The only choice.

Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.

Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.

Best thing I ever did! Bruce Simmons at American Liberty Mortgage is the best. He is always there to answer your questions, and can easily explain the whole idea of a Reverse Mortgage. He takes the time and goes through the entire process with you. It worked out so well for me. Thank You Bruce!

We had researched Reverse Mortgages for 5 years and after hearing about Bruce Simmons and meeting with him, we finally decided to move forward with the Reverse Morgage. It has been over a year now and we are still very pleased with our decision. We think Bruce is very professional, knowledgeable and honest. Thank you, Bruce, for all your help.

I first met Bruce Simmons 2017. I found him on the internet. I was looking for someone local. I called him and explained I was only looking into doing a reverse mortgage, so I did not want him to think this was something I was ready to do. Bruce was friendly, very open about the basics of a reverse mortgage. Bruce came to my home and presented the figures and other details that he could offer. The first thing that impressed me was this was not a hard sell, more of a informational meeting. He was very open about all of the details, and answered my questions without hesitation. What really was evident was he was establishing a relationship with me, and I realized he knew I would not take the loan at that time. There was not enough equity in my home, and I would have to bring money to the table. Although I was not ready to do a loan, Bruce assured me he is always available for questions. Four years later, I finally did do a reverse mortgage, and I couldn't be happier with having done it. I have done away with a mortgage payment which allows me to fund my retirement account with that mortgage payment. We did some much needed landscaping with our cash out transaction, and will move on to improvements inside of the house. My reverse mortgage has a line of credit, and I feel sense security knowing it is there if I need it. Bruce explained that a reverse mortgage is not for everyone, but I feel certain that he paved the way for a strategy that worked for me. I will definitely do a refinance when the time is right. I will check in with Bruce to be sure what the benefits are when I do it again.

I have worked with Bruce Simmons for 15 years. Bruce is one of the best in the industry. He is extremely knowledgeable, kinds and detailed in what he does. His clients love working with him and trust him to help them with their Reverse Mortgage loans. I would recommend Bruce to anyone I know that is thinking about or wanting to do a Reverse Mortgage. He will always take very good care of the customers and make sure their needs are met! Class act and one of the best in the industry by far!