After speaking with a lender (who is hopefully a member of NRMLA, the National Reverse Mortgage Lenders Association) about the basic of reverse mortgages you'll need to attend a counseling session with an unbiased counseler that is qualified by the federal government to carry out the counseling. The counseling session may take place on either phone or in person and may take from a half hour to 2 hours.
A counselor will:
· Explain reverse mortgage basics, options, and costs
· Take you through a questionnaire to determine if you can meet your financial obligations, such as paying your taxes and insurance
· Walk you through the lender-provied Loan Comparisoin document
· Be willing to answer any questions you may have about the program
Counseling generally costs $125-250 per session. While your lender should not recommend any specific counselor, they may be able to tell if any of them are offering the sessions free of charge.