Larry Weiss, CPA/Financial Planner with Lau Financial Services Bill Wiles, Tennant In Common/1031 Exchange Specialist Claudia Solis, Exchange Officer, First American Exchange Company Reverse Mortgages Reverse mortgages are overcoming a bad reputation and becoming increasingly popular. Reverse mortgages allow homeowners 62 and over to draw equity from their homes without being required to make monthly mortgage payments. The equity can be used how ever they wish - to pay off an existing mortgage or other debt, purchase a car, pay for health care costs, repair a roof, or to simply be available as a line of credit. Reverse mortgages are negatively amortizing; that is, interest will accrue and increase the balance of what is ultimately owed to the lender upon sale or death. There are no income requirements in order to secure a reverse mortgage. Qualifying is based on the age of the homeowner(s), making these loans attractive for seniors who have limited options. The loans are non-recourse, meaning the lender has no right to pursue other assets of the senior's estate other than the property used for the security of the loan. Reverse mortgages can be the right tool for the right situation, but just like any other loan program, they are not for every senior. The amount of money that can be borrowed is limited and may not be enough. The loans may also be too costly if held for only a short period of time. Deciding to pull equity from the home can be costly if not planned well. Seek help from a trusted advisor to determine the best course of action for yourself or your loved ones. Contact one of our lenders listed above for more information. 5 Credit Mistakes Buyers Can Avoid Before we can begin the process of searching for a new home for our buyers, we will meet with a lender and get them preapproved. We want to make sure our clients are on solid footing to obtain a home loan. Here are common credit mistakes to avoid. 1. Not leaving enough time to fix errors. Consumers should review their credit report at least once a year. Inaccuracies aren't uncommon, and it takes time to set the record straight. Each of the three major credit reporting agencies-Equifax, Experian, and TransUnion-provides one free credit report per year ( www.annualcreditreport.com). There's a charge, typically about $15 to see the actual credit score, but the cost is worth it. 2. Changing spending behavior. A surprisingly good credit score can tempt prospective home buyers to open credit card accounts or take out a loan for a new car just before buying a new home. Such actions can damage their credit score during a critical time, making it harder to obtain the loan they want. 3. Seeking a subprime loan. Even those with a marginal credit score can qualify for conventional loans. Apply for the best mortgage you can find and remember that other factors besides your credit score, such as the size of your down payment, come into play when applying for a loan. 4. Confusing "prequalified" for "preapproved". Prequalification doesn't require the lender to verify income and means very little in terms of a consumer's ability to obtain a mortgage. We encourage our clients to get preapproved, a process in which the lender checks employment history, income and bank funds, and reviews the credit report. 5. Forgetting about credit after the purchase. Once you move in to your new home and decide down the road to refinance or move again, your credit will once again take center stage. Remember to keep your credit score in mind as you deal with the expenses of being a home owner. | 
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