Reverse mortgage is a great way to use your home equity to get much needed cash when needed. Taking a reverse mortgage product requires simple steps but every step requires some precaution to be taken. Some simple things you can take care of while buying a product:
- Doing business with companies you know: It is very important that you deal with lenders and firms you already know. One way to identify them is by getting referrals from friends etc, who have already experience with them. Ensure that these companies provide all their details – names, phones, physical address, etc.
- Do not reveal too personal information to all: You should take care that you do not provide all your private info to each and every one who comes to you, provide data / info to only genuine company / executives
- Be patient while throughout the process: In most of the cases, there is no urgent requirement and thus resist the temptation of "acting now". Sometimes a financial planner can also create such artificial urgencies, its best to avoid such temptations. Its best to walk away from such a deal.
- Reading the small print: Most of the financial products come with lots of small print, reverse mortgage is no different. It is very important to know what all cost are associated with the deal.
- Right to cancel: Remember you also have a right to cancel your deal within 3 days of finalizing it. If you feel something is wrong, just cancel the deal!
These are just a few points you should take care of while reverse mortgage deals. Remember, apart from the above, there is no substitute to understanding your needs and product details. Those are covered in more details in other articles of the website.