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The only difference might be that you will be protected more as a consumer and it is easier to qualify for a refinance.
Step 1 :
You first have to figure out the type of loan you have. If you already have a FHA loan, then you are lucky because you will have more options for refinancing than a borrower who has a non-FHA loan, subprime loan or a conventional loan. In order to figure out your loan type, approach your present lender.
Step 2 :
In order to refinance your loan, you first have to be clear as to why you want to do it. Do you want to take advantage of paying lower interest rates? Do you want to consolidate you debts in to one single loan? Or, are you looking to take a loan on your home equity? This process is important as it will help you figure out what sort of refinance loan you should apply for.
Step 3 :
It is important to figure out how much you can afford. The affordability factor depends on your monthly income, monthly expenses and the interest rate. There are many online tools that can help you figure this out but it is best to approach a professional who specializes in FHA refinance loans. You will get a more accurate picture and if you are satisfied with the lender, he will also present you with a prequalification letter. The letter is not a guarantee of getting the loan but it will give you idea how much you can afford.
Step 4 :
This is the most important step in the FHA refinance loan process. Here you spend time doing a lot of homework to save you money in the long run. Take time to talk to as many lenders as possible; compare the interest rates they offer you; and try and negotiate even a better deal. If you find a lender, try getting a pre-approved for the loan.
Step 5 :
Here you apply for the FHA refinance loan. This is similar to the previous loan process you had. The loan officer will help you complete the refinance application and you will have to sign many forms authorizing the lender to check your personal information like employment, income and saving. The lender might also order an appraisal of the property to determine whether the value justifies the refinance amount.
Step 6 :
Here you finally close the refinance loan. Read the contract carefully before signing it and be prepared to sign a lot of documents.
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