A reverse mortgage counselor plays a very important part in the reverse mortgage process. Attending a session with a reverse mortgage counselor is mandatory before an application can be processed. There are many different areas that must be covered when applying for this type of loan. Type of loan must be selected, mortgage insurance must be discussed and ramifications to your estate must be covered. The borrower must determine payment schedule, the length of the loan, and must fully understand how the process works. Taking out a reverse mortgage is very serious and should only be done with full knowledge of the program.
Will A Reverse Mortgage Counselor Deny My Application?
A reverse mortgage counselor cannot stop the loan process. They are not the lender, only a part of the process. However, they can recommend that you take a different course of action if they feel you cannot benefit from the reverse mortgage program. These counselors are trained financial professionals whose purpose is to guide you into a sound financial decision. This is the reason that their services are required. It is to ensure that the elderly are protected when entering into this program.
Can A Reverse Mortgage Counselor Give Me Legal Advice?
A mortgage counselor is not qualified to give you legal advice. It is against the law for anyone to issue legal advice that is not an attorney. This is referred to as UPL or unauthorized practice of law. They can, however, offer you many choices with an opinion on what product or loan type best suits your need. They are able to recommend a different type of loan program if they believe you will not do well with a reverse mortgage.
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