Sunday, May 2, 2021

Choosing the Best Lender for an FHA Streamline Refinance



Finding the ideal FHA mortgage lender is not as effortless as it sounds. First off, you need to narrow down your choices to come up with an approved list of lenders from the Federal Housing Administration because not every lender offers these kinds of loans. Also, check their current fha streamline rates and the amount of money you stand to save by opting for an FHA Streamline refinance.

In this post, we discuss a few tips that will help you search for the ideal FHA mortgage lender.

1. Know your credit score


It is crucial to note that FHA seeks borrowers with a credit score of at least 500. However, if you desire to get an FHA loan but have a down payment of 3.5%, you will require a credit score of 580 and above.

For FHA Streamline Refinance, appraisals are unnecessary. Your Loan-to-Value-Ratio is calculated based on the last appraised value when you received the current loan.

In some instances, an appraisal, however, may be required.

Also, to assess the prevailing mortgage rates, you need to request the most current rate quote by completing a rate quote request from the lender. Interestingly, you will discover that they have the same rates or even lower compared to other FHA programs.

2. Shop around for more than one FHA lender


FHA mortgage rates may be all over the place, and for this reason, you need to do thorough research to ensure that you settle or the best mortgage rates. Some lenders may offer lenient terms compared to others. Or may qualify you for an FHA mortgage loan faster compared to others.

Remember, lenders often price their mortgage loans vis-à-vis the prevailing marketing conditions. And also mark up their interest rates as a result of profit targets and business costs.




Figure out the difference between lender fees and FHA mortgage insurance premiums

To cater to the loan default costs, FHA-backed loans need mortgage insurance. FHA mortgage insurance is similar. You will be required to pay uniform premiums at lender one as you will at credit union two. Lender fees are dissimilar from lender to lender. That makes it effortless to compare the fees and terms on offer for each lender.

3. Look out for the APR


Another way to figure out how much fees is required is to compare the annual percentage rates of varying lenders. They will always make money by charging you different fees such as application fees, processing, and origination fees. And or through building their profits into the interest rates you pay.

That is why you need to factor in your payment interest rates plus the fees included APR. You may use the calculator provided on various lender sites to help you assess the difference between annual percentage rates and interest rates.

4. Customer service


When choosing the best lender for an FHA streamline refinance, you want to ensure that they exhibit exceptional customer service. Choose a lender who responds to phone calls, messages, emails, and other communication channels on time or reaches out to you as soon as they can.




You want to ensure that the staff are polite and show concern for their clients.

5. Stellar reviews


Before settling for a lender for an FHA streamline refinance, you need to ensure that they have a good name. You can find out how clients perceive their services by checking their comments on social media platforms, the company's website, Google, and other equally helpful avenues.

The ideal FHA streamline refinance lender offers exceptional services to their clients, alongside reasonable interest rates. You want to steer away from FHA streamlines that have an unpleasant history. And those with bad reviews on their platforms.

You may also consider recommendations from trusted family members, relatives, and friends of FHA streamline refinance lenders they have worked with before. And would vouch for their services.

You also want to ensure that you are working with award-winning experts whose primary aim is to provide their customers with the best rate quotes.

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