Who do I go to for my mortgage a Mortgage Company or Bank?
I have run into many situations where a client says that I need a mortgage, but say that I am going to my bank because I don't want to be bounced around from company to company. The truth is that even banks do not hold all their own mortgages. An example is that I spoke with a person that did go to a bank, the loan closed and a week later received a letter indicating the loan had been sold. The person called up the bank and asked about their loan being sold. The response that was given was that they only hold onto certain types of loans.
So my point is that when shopping for a loan not even the banks always hold onto their own loans, so it is imperative that you give mortgage companies the opportunity to give you the best deal. In addition, most mortgage companies work with multiple lenders which give the mortgage companies the advantage over the banks since they typically only have one source for pricing.
Using a reverse mortgage to purchase a home!
This is a great forum to let everyone know that a reverse mortgage can be used to purchase a home. This also gives realtors the ability to open up additional lines of market opportunity. Prior to the introduction of the purchase program, realtors and reverse mortgage originators were like fire and water. Realtors are trying to sell a house, and reverse mortgage originators are trying to keep seniors in their house. Now we can all work together.
This is an opportunity for seniors that are looking to down size, move to a single level floor home, move into a condo, relocate to be closer to family, etc. The available funds are based the age of the youngest borrower and on the lesser of the appraised value or purchase price, in addition to the interest rate.
So by selling their current home they can use those funds to apply to their new home, and use the reverse mortgage for the balance. This way they get a brand new home (which must be their principal residence) to meet their needs with out a mortgage payment. And based on the cost of the home they can also potentially can have additional remaining funds for their own use.
The benefits are:
Eligibility
So here is a way that realtors and reverse mortgage originators can now work together harmoniously to meet the needs of senior clients with a viable alternative!!
Asking for Referrals
Contacts are the best way to generate referrals, and next to getting referrals from great service is asking for referrals. I have listed some ways of getting and asking for referrals very cordially.
Continued contact with clients, especially the happy ones are the ones that you can guarantee will send you referrals, and those referrals will not cost you anything.
Free HECM Counseling
I just read that MMI (Money Management International) starting July 1, that they will not be charging for HECM counseling. Based on available grant money they feel they should be able to offer this until sometime in October. To be able to offer this free counseling for as long as they can, they will be limiting the counseling up to 3500 sessions per month.
Lenders cannot steer a senior to any particular agency, but we should make sure that MMI is on the list of counseling providers that we provide to our clients.
Dennis Chanski
866.373.3033
What is value? Value is not always something tangible, and everyone has a different list of priorities as to what is valuable to them.
When it comes to a reverse mortgage there are many valuable benefits to seniors. The ability to remain independent, the ability of not having to worry about a mortgage payment, the ability to have financial independence, and the list goes on.
The only people that can ultimately determine the true value of a reverse mortgage is the senior(s) themselves. I act as a conduit in explaining and educating the senior, showing them the benefit but also understanding their needs, wants, and goals, and determining if this is this is the best product to meet those goals and desires. Sometimes, a reverse mortgage does not make sense and there is not enough value to meet the client's needs.
We (meaning loan officers, professional advisors, family, friends, etc.) need to look at what this type of product can mean to a seniors well being. The benefits and value needs to be reviewed to determine if the value of a financial boost can benefit and make a positive impact in a senior's life which would outweigh the cost. Yes, there are costs involved, and yes the costs are not inexpensive, but what is the cost of not doing anything? The cost of doing nothing can also mean that a higher price can be paid later!
Every service or product that is offered comes with a price and the consumers needs to determine if what they are getting carries a value and a benefit from the product and service offered.
What I would ask is, if you have a senior (homeowner) as a client, parent, family member or friend that is need in need or can benefit from having access to additional funds that they have built up in their homes, I would encourage you to at least explore the use of reverse mortgage and find out how valuable it can be. I think that you will be pleasantly surprised.
If you have any questions please contact me.
Dennis Chanski
866.373.3033
I provide attention to my clients by listening to their needs and developing a strategy that works to meet their goals.
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