When Interest Rates Rise, Homeowners Hold onto their Current Mortgages. Conventional Mortgage Loan Officers Start to Get Hungry for Other Types of Loans for Income.
Linda’s real estate brokerage had an in-house lender that Linda had used once in a while to work with her clients on regular, conventional loans. There was a level of trust there and it was there that Linda ran right into the “MY GUY” challenge when it comes to Reverse Mortgage loans.
The in-house lender had a guy that had ‘done a few reverses’ and he could refer her to him, or better yet, he even offered to do the Reverse Mortgage loan for her himself. I mean, how hard could it be after all? He was an ‘experienced’ loan officer (and his conventional loans business had really fallen off sharply!)
Well you wouldn’t hire a roofer to do your plumbing would you? True, they both build houses, but their expertise lies in their specialty. Can they be specialists in both, absolutely. But to be that, you have to be trained and actively practice both specialties.
Reverse Mortgage is a specialty loan that has different lender requirements, processes, and goals than a conventional loan. It has qualifying differences that only apply to a reverse. The lender options are different, they have different strengths. It is as important to know where to place your client’s loan and well as structure it so they can take advantage of all the reverse mortgage benefits open to them.
A good loan officer has seen a LOT of scenarios in their specialty and has solved a lot of hairy real estate problems. A great loan officer has done the same, but also knows when to refer a loan out to a specialist. I have not done a construction loan for over 10 years. I could ‘do’ one tomorrow if I was asked, but I would be wary of missing something for my client. Construction Loans are NOT my specialty and no client should miss out on an option because their loan officer is practicing on a new loan type.
I didn’t forget about Linda!
So Linda did talk to ‘the guy’ but didn’t feel like she got her questions answered in any depth. She never really felt her situation was understood. She promptly looked up my contact information and gave me a call.
Linda and her husband had upgraded to add solar panels, but new bills were pushing the limits of their budget and Linda was retiring. She knew their home value had increased significantly so now was the right time for Linda to connect with Kim on their reverse mortgage. Linda got all her reverse mortgage questions answered and confidently moved forward.
“Thanks for being so careful with your answers to all my questions on our reverse mortgage. I am so pleased.” ~Linda
The Reverse Mortgage Bonus:
With their home value appraised at $485,000, they were able to pay off their existing mortgage and still have a $20,000 draw at closing to pay off the solar panel debt. They have an additional $40,000 available as a Line of Credit as needed.
What to Do Next:
Kim’s wealth of Reverse Mortgage experience and knowledge led her to teach other industry professionals, Realtors, Insurance Brokers and Financial Advisors, about the power of strategically accessing home equity as part of your retirement plan. Who better to have on your side when seeking reliable information?