You’ll find different kinds of loan today and one of the most famous ones is reverse mortgage. There are people who believe that this is just like the conventional mortgage or home loan. The only thing they share is that they are both loans against the home of a borrower. To further understand this kind of loan, here’s a brief discussion of what it really is.
Understanding Reverse Mortgage
The borrower doesn’t need to pay the lending company back as long as he or she will still live at the house that is utilized as collateral. The amount of the loan is going to be based on the equity of the home and the borrower’s age. A borrower will have the option to receive the fund in various terms. These could be a lump sum, a credit line, or a combination of these methods. You should take note that in a reverse mortgage, you don’t have to pay the loan back unless you sell your house, you move out, or you die. Among the different advantages of having this type of loan is that you could use the loan money without the need to rent, move out, or repay the loan every month.
Who Could Apply For A Reverse Mortgage?
You can apply for a reverse mortgage if you are at least 62 years old and if you own a house, which should also be your primary home.
One good thing about a reverse mortgage loan is that you don’t need to have a specific income to qualify. Your house should meet the U.S. Department of Housing and Urban Development (HUD) standards if you wish to qualify. In case you own a cooperative house or a trailer home, you cannot apply for this kind of loan. Only a single family house, a condominium, or a one unit to four unit house or other kinds of HUD recognized residence that are the only kinds of houses that are accepted.
Applying For A Reverse Mortgage
You should shop and compare. Use the internet to search for a reverse mortgage lender and compare their fees and rates. It’s always a good move to shop so you could determine possible options. You could also ask those whom you know such as friends, family members, co-workers, and relatives that they know regarding this kind of loan. You can also read reviews. Choose a reliable and legitimate reverse mortgage lender. The problem is that this process is oftentimes difficult especially because of the scams out there today. This is the primary reason why complex research must be done before you make your final decision.
Once you have picked out your local reverse mortgage Myrtle Beach lender, you could fill out and then submit the application form. Make sure that you have the needed documents like your proof of identity, credit report, and so on. The requirements differ from one lender to another. You may also be required to show a property appraisal. When you are approved, be sure that you have read and also understood everything before you sign any document or contract.
Call Reverse Mortgage Specialist if you are interested in getting a reverse mortgage loan.
Reverse Mortgage Specialist
1293 Professional Drive, Suite 204
Myrtle Beach, SC 29577