You can get many things online, boats, planes, mobile homes. In today’s crazy world where everything is at your fingertips, a Home Equity Conversion Mortgage differs. Obtaining one means you will have to meet with a team of professionals who are on your side. While you may think you know exactly what you need, there are many ins and outs of the business mortgage professionals in California can help you with to get you the best deal.
Along with the help of these mortgage professionals in California — you will be able to unlock all your buying power, and begin your equity borrowing journey. The first step is to see a counselor. Read below to learn more about your new best friends when it comes to mortgage.
First thing is first, let’s meet your counselor. No, no, no, not the type that fixes a rocky marriage, or helps you navigate the pitfalls of your childhood at nominal fee. Instead, the mortgage counselor is here to help you assess your dreams. They are legally required to give you helpful and accurate advice so that you can make an informed decision about your HECM. The counselor will never bully you into a decision, in fact they will just present you with information about the mortgage program you select.
Even the best of borrowers, and most independent homeowners are required to see an approved mortgage counselor. They must be approved by the HUD, Fannie Mae, or Financial Freedom depending on what loan product you are starting out with. For an HECM, you can visit Housing and Urban Development’s website for exact contact information.
At your counseling sessions, you will be asked a variety of questions about your finances, health, your family, your house, and other mitigating factors. Lay everything out on the table and be as honest as possible so nothing you may have left out comes back to bite you later on. Counselors will spend around an hour with you in order to get all the info they need to find you some options.
The mortgage originator is the last first step to your equity converting dreams. This person begins the formal process of the loan, and sets everything up. When you meet up with the orginiator, they will determine what is best for you individually. After that they help you fill out the application forms, and submit them to the underwriter. After this the next person to see the mortgage will be the lender.
It’s pretty standard to meet with your mortgage originator two times. First off to fill out the application, and second to finalize closing details. This may turn into more meetings if something was missed. It’s common to see your mortgage originator 4 or 5 times.
There are a few things to look for when finding the right originator for you. They should be experienced in reverse mortgages in California. If you happen to choose a traditional loan originator, you will be risking your finances with someone who may not have the proper experience to help you the most.
This is not a requirement either, but try finding an originator who belongs to the National Reverse Mortgage Lenders Association (NRMLA). They have access to a superior set of tools than those who aren’t. The originator shouldn’t ever by pushy, and should be someone who you are comfortable with.
One good thing about the appraiser is that they come to your home. This is in order for them to take a look at your home in order to figure out how much it’s worth today. This not only depends on the shape of your home, but the prices of other homes in the area. You may be happy to find out that you are sitting on a mountain of equity that you can use for your heart’s desire.
You shouldn’t have any worries as long as your home is in good order. Even if everything in your home is great, it doesn’t hurt to make sure everything is clean and tidy. This includes sections of your home like your yard, small fixes (i.e. broken door knobs), and small cosmetic improvements you can make.
You can also get all of your home records together — including any work that’s ever been done on your house. Remember, your appraiser will be more impressed with a clean, working home than a $60,000 check for the granite flooring you put in 15 years ago. Unfortunately, the money you put into your home won’t return an equal value in appraisal in most cases.
Because you won’t be able to do much to sway the appraiser’s opinion of fair market value, it’s best to wait quietly until they are done. If you really need something to do, you can think about just how you plan to spend your chunk of change. It’s also a good idea to make yourself available in case there are any questions you need to answer. Last but not least, if you have any trusted family members, ask them if they can come to your appointments to help.
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