Home Inspector sees interaction with the reverse mortgage industry

New construction

The Reverse Hypotheek industry has a while aimed at communicating the potential benefits of the Home Equity Conversion MortGage (HECM) for the purchasing program as a mechanism for securing a new house with the help of an inverted mortgage. But an impact that Cook has observed in his own company – at least anecdotal – is a clear distrust that older buyers have for new construction.

“They have quality problems, especially with how they were built today,” he said. “Some have the feeling that houses are not built like before. So, even if you think of the inventory of housing, I cannot imagine that a large number of baby boomers are building. I think they are more or less on what they have, or buying that 20 to 30-year-old house. “

Such quality problems may be that some Baby Boomer customers do not move to newly built houses, Cook said. But interest rates are another element that tempts baby boomers to stay where they are – in particular the homeowners who are refinanced during a period of historically low rates that are then discouraged to take a new, increased rate.

Inspection requirements

Cook explained that his company sees a “big trend” in mortgage and title companies that need a home inspection as part of the transaction process, which he said could also apply to the Reverse Hypotheekzijde.

‘[It’s being done] Just to verify the status of the house before you release those funds, “he said. “For us, whether they get older, buy a new construction or just buy a home, there is a chance we see, and it grows from the perspective of the inspection industry.”

A home health control, or a copy with regard to a credit line for equity or a reverse mortgage, could see that an insurance company requires an inspection with a new coverage plan, which is important for people in the inspection field.

When demanding the intersection between assessments and inspections – especially because it relates to a Federal Housing Administration (FHA) It required that sometimes requires a second assessment on a reverse mortgage – Cook admitted some agreements and also acknowledges that inspectors are generally more expensive than appraisers.

Forge connections

When asked whether he saw the need for people in the inspection company to forge connections with reverse mortgage inspections, Cook did not hesitate to answer in the affirmative.

“We tell all our franchise owners not to forget banks, lenders and loan assignments,” he said.

Cook also believes that reverse mortgage professionals are potentially great partners for home inspection companies.

“Everyone who buys a house, someone who gets a reverse mortgage or someone who has a new insurance policy really has to do his best to understand what they own, or the status of their house – especially before they take more money, or before they Insurance receives policy that may not cover the full value of a house, “he said.

But home inspectors also have reputation as ‘alarmists’, Cook said. This is because “they were literally trained at school to find and identify the biggest problems. If that customer does not intend to move or intend to go into place, that is a very personal thing. “

If dealing with a home inspector for a reverse mortgage client, you can find an inspector who has a good ‘bed’ way, so to speak, the key to a successful relationship and transaction, Cook said.

“Home inspections are great, and everyone should recommend them, because everyone must understand the status of the greatest possession that they have at all times,” he said. “But make sure that you work with a home inspector who does not worry about your customer, because that would not be good for the mortgage industry or the psyche of the customer.”