When you decide to refinance your federally insured mortgage you want to make sure you work with a reputable company that is going to keep your best interests in mind along with their own. You don’t want one that is only focused on their bottom line and has no desire to help you better your financial situation. Lucky for you there are both good and bad FHA refinance companies out there, and it’s not too difficult to find the good. Here are a few tips that may help you find a great refinance company to work with.
Real Estate Agents and Loan Officers – Who Has Worked with the Company?
When you’re sifting through the FHA refinance companies available to you, a good place to start is with referrals. You have friends and family who have worked with various companies that can get you pointed in the right direction. While you’re asking the people you know about their refinance companies, you may also want to ask them about their real estate agent and loan officer. The reason you want this information is because the professionals involved in the business are going to know a lot more about particular companies than your friends and family will. So the friends are a good place to start, but they aren’t the best trusted resource. Know, that resource can be found with the professionals.
After you’ve gotten your referrals you can start contacting the professionals and talk to them about the companies they recommend. They have to work one on one with lenders to get loans handled and approved so they may will more than likely know the pros and cons of each of the lenders they work most intimately with. This is also why you want to get multiple referrals. One loan officer may work with three particular lenders, while another works with three other lenders. To get a solid number of possible refinance companies, you’ll want to hear from multiple experts.
Last but not least, it’s a good idea to do some research on the company and find testimonials and reviews from other people who have worked with them. Sometimes theses are going to be your best indicator as to the type of company you may be working with, as the reviews are often brutally honest. Don’t neglect this part of your homework; it can be very enlightening.
Personal Interaction with FHA Refinance Companies
Referrals are the best place to start when it comes to any major financial move, but they are not the end all by any means. The ultimate determining factor in whether or not a refinance company is good is going to rest on your shoulders. Why? Because in the end you are going to have a long-term relationship with the company you choose so you’re going to want to make sure the company is a good one.
When you first contact FHA refinance companies pay attention to how the staff makes you feel. Are they respectful and respectable? Do they treat you with courtesy or do you get the feeling that you are just another number? It’s also a good idea to ask them about any advertisements you have seen and whether or not they will honor the promotions you bring to their attention. If they can’t honor their word from the get-go, you may want to pursue a different option.
It’s also a good idea to determine what you want in a lender before you start approaching them. What features of the refinance are most important to you? Would you prefer a reduced bottom line or is the interest rate your area of focus? Or, do these factors matter but ultimately the up-front fees and closing costs are what you know are going to make or break you, so they are your area of focus. This would be understandable considering that closing costs are often in the thousands. Regardless, deciding what you want out of the refinance is going to be a key factor when finding the right refinance company. Ideally, you will find a company that is willing to work with you in a way that enables you to get your concerns taken care of while saving you money in the process.
In the end what you really want with your refinance is to reduce your bottom line and, if possible, your monthly mortgage payments. Regardless of the refinance company you choose, if you don’t end up with a refinance that leaves you better off financially then wait to refinance or continue shopping around until you get the loan that is going to work best for you.