The Hecm Wizard

WHY USE THE HECM WIZARD?

Be informed……the most important element in getting a reverse mortgage is finding someone you can work with, with outstanding knowledge and minimum sales pressure. Being prepared, with the help of the HECM WIZARD, will make choosing and interfacing with a lender much easier and will help you make a more informed decision.

The HECM WIZARD can help you determine if you possibly QUALIFY for a HECM loan. HECMs are complicated and it can be frustrating to go through the whole process and find out you do not qualify because of insufficient income, high debts or payment obligations, or poor credit. THE WIZARD CANNOT MAKE A LOAN DECISION. Only an FHA underwriter may do this. HOWEVER, the WIZARD can guide you to the information needed and based on your input, advise of possible issues, payment scenarios, potential upfront costs depending on your options, and provide forecasts of loan balances and home equity based on your usage, interest rate and home appreciation assumptions.

If you prefer not to share your contact information, please use our Quick Calculator for basic information. Sometimes, it’s all you need.

Please read the following hints before starting the HECM WIZARD

Go to 3 home value sites and average the result. Trulia, Zillow, Eppraisal, Yahoo, Reply, and HomeGain are all good places to go. Maybe easier is to ask a local realtor for a quick sales estimate of your home value.

If you have an existing mortgage, find the latest mortgage statement and note the balance and the payment. Do this for all liens on the property, such as HELOCs or even past due debts you are paying off but are secured by your home.

Find your latest annual property tax and property insurance invoices (or use the amount withheld by your mortgage company (if they pay your tax and insurance) and note the amounts. Also, if you pay HOA or a land lease, note those annual amounts as well

If you know you need major repairs, you might consider getting an estimate or using Home Advisor’s True Cost Guide. Necessary repairs will be completed with funds withheld from the HECM proceeds. If repairs exceed 15% of the home value, the lender may require the repairs be completed before approving the HECM

Know your monthly income from all sources for yourself and anyone else on title, aged 62 years or older. If your spouse is not on title, it would be useful to know his/her income as well.

The lender will need to know the monthly financial obligation expense of all the borrowers. So make sure you have a note of payments you or your spouse on title make on alimony, car, store card and credit card debt, judgment payments, bankruptcy payments and income tax/FICA you did not net out of compensation.

It’s a good idea to have the most current balances of any savings or retirement accounts on hand in case we need this information to help you qualify

It is possible we will need to use the net income (i.e. income less financial obligations) of your spouse who is not on the home’s title, or possibly ascertain the net income of one of your dependents living in the home with you to help qualify you for the HECM. If required, the HECM WIZARD will take you through the required data.

The WIZARD is currently not available. We will be releasing an upgraded Beta version in next few weeks. So check back regularly.

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