FHA Refinancing: 10 Tips

Curious about FHA refinancing and 10 tips on how to prepare for your mortgage loan refinance? The FHA, or Federal Housing Administration, makes mortgage loans for qualified borrowers. These loans can be applied for with any lender that provides FHA financing. If you have an existing FHA mortgage and you want to refinance, there are some things you can do to speed up the process. The FHA has a Streamline Refinance program that will help you get your loan as fast as possible.

1. Contact your lender about the FHA Streamline Refinance program. Since you have already been approved for an FHA loan in the past, you should qualify for the refinance if you have made your mortgage payments on time.
2. Ask the lender what they need to approve your refinance request. Most lenders only need your original mortgage information and your homeowner’s policy. You will have to verify your identification as well.
3. Complete the application as required by your lender. Many will only need a small amount of information in order to approve your refinance.
4. You must use the home as your primary residence. If you do not, a Streamline Refinance can be harder to obtain.
5. There is no appraisal required for the FHA Streamline Refinance. However, if you are going to include your closing costs in the new loan amount, your lender may need to order an appraisal.
6. If you have made your payments on time, no credit check is needed. The lender will not have to verify your employment or income, speeding up the refinance process.
7. Once you are approved, go over the loan package with the lender. Make sure the new loan payment and terms are what you requested when you applied for the refinance.
8. Set up a time to close on your loan. Ask the lender if they require any additional information at closing.
9. If you are paying closing costs out of pocket, take a check to the loan closing. Be sure the amount is correct before you write the check. The lender should have given you a disclosure that lists all of the costs you need to pay at closing.
10. Close on your loan. Review all of the loan documents, and find out when your payment is due.