Don't procrastinate. Procrastinating on a reverse mortgage is easy because, unlike the situation when you took your first forward mortgage, you already have shelter and the children are grown and out. Fight the tendency by making an informed decision, which could be that a reverse mortgage is not for you, or that it is for you but that it would be better to wait and allow the amount you can draw to rise.

Determine whether your state or locality has a program for property improvement or for the payment of property taxes that can meet your needs. These single purpose programs are invariably good deals, but they usually have eligibility criteria that limit their availability. A good place to start looking for them is the directory of "homes and communities organized by state" on www.hud.gov.

Educate yourself on reverse mortgages. Call AARP at 800 434 3410 for a free copy of Home Made Money, an excellent pamphlet on reverse mortgages. You can also order it online at www.aarp.org/revmort. Other good online sources are www.reverse.org, and www.mtgprofessor.com/reverse_mortgages.htm.

Assuming you are eligible, determine how much money you can draw and what it will cost. You do that using an online calculator at one of the following Web sites: www.rmaarp.com; www.revmort.com; www.nrmla.org; or www.ffsenior.com. The first three cover the FHA Home Equity Conversion Mortgage (HECM) and Fanny Mae's Home Keeper (HK) mortgage. The last one covers those plus the Financial Freedom Cash Account (CA) mortgage, which caters to high-priced homes (over $400,000). Based on these results, decide whether you want a reverse mortgage now, and if so, which of the three types.

Formulate a preliminary plan of how you will draw funds. Will you take a line of credit, a monthly payment, or some combination? Also, formulate questions to be put to a counselor.

Get counseled. Counseling by a HUD-approved counseling agency is mandatory, regardless of which kind of loan you select so use it as part of your education. You can find a counselor on your own by going to HUD's Web site, clicking on your state and selecting from among the agencies that list "HECM counseling."

You can also find a counselor through AARP. When you order its free consumer guide, AARP sends you information on its counseling referral system. AARP encourages you to read the booklet before requesting counseling. If there is a possibility that you may select a Home Keeper or Cash Account mortgage, find your counselor through AARP.

Select a lender: Select a lender who belongs to the National Reverse Mortgage Lenders Association (NRMLA). These lenders subscribe to a code of conduct that prohibits deceptive or sharp practices. The code, as well as a list of members by state, is available on NRMLA's Web site (www.reversemortgage.org). Next to each NRMLA member is a notation of the types of loans they do. All do HECMs. Most do HECMs and HKs. A smaller number do CAs.

NEED GOOD CREDIT FOR A REVERSE MORTGAGE?

"I have an expensive house, not enough income, and no credit because I just went through bankruptcy. Can I get a reverse mortgage on my home?"

Yes, there are no credit or income requirements because borrowers don't assume any payment obligation. To be eligible for the major programs, owners must be 62 or older, and must occupy the home as their permanent residence. Eligible properties generally include single-family units, condominiums, manufactured housing and houses in planned-unit developments. Two-to-four-family units may or may not qualify. Mobile homes and co-ops are not eligible.