Deciding whether or not a reverse mortgage is the right choice for you can be overwhelming. With questions galore and numerous conversations with different people, you may be left wondering exactly what your obligations will be during the reverse mortgage process. If you need a little refresher, the Idaho Reverse Mortgage team has compiled a list of your top obligations that you will need to follow below.
Keep The Property In Good Condition
Maintaining the condition of your property is crucial during a reverse mortgage. Your home’s appearance must be kept at the same level or higher than it was at the time that it was appraised before the process began. In between your vacations that you embark on, make sure your home is up to date on all maintenance inside and out! If you routinely take care of the little things your house needs to maintain its value, then you can avoid big cleaning days or renovations that take time away from fun adventures.
Pay Property-Related Expenses
Certain property expenses may be easily forgotten, but it is very important that you pay all charges on time. These expenses can include homeowners association fees, home insurance, property taxes, and utilities. All of these expenses need to be paid because your lender wants the home to have a clean title. Alternatively, the lender may choose to do a “set-aside account” if they believe the borrower may not be able to cover their property expenses. Ensuring all costs are taken care of and having a clean title free of liens will avoid any issues in the future.
Property Remains Your Primary Residence
Every year, you will be asked to certify that you are still living in the property as your primary residence – you must live in this location for at least six months out of the year for it to be able to be considered a primary residence. Keep in mind that others cannot occupy the home in place of you if you choose to move or do not want to live there anymore but still keep ownership of the house. However, this will not affect or limit who can live with you while you are still a resident in your home!
These obligations, while important, will not affect your daily life or how you get to enjoy your payout! If you are interested in a reverse mortgage or have any questions, contact Idaho Reverse Mortgages today!
