There’s plenty of things to consider to ensure you’d get a favorable mortgage deal, but none is bigger than selecting the right lending facility. This is why it’s generally beneficial to borrow funds from a credit union.
If only aspiring homebuyers know exactly what credit unions bring to the table, considering banks and non-traditional lenders would be a real waste of time. These non-profit organizations might have downsides, such as having relatively fewer resources and offering lower rewards, but their advantages clearly outnumber and outweigh the drawbacks.
Here are some of the things you should expect when applying for a mortgage in a credit union:
Discover Lower Rates
Credit union rates trump bank rates any day. This is because they’re not in business to make money, but to genuinely help members.
You may see incredibly low rates on TV or on the Internet offered by banks, but they’d always be a catch. More often than not, the advertised savings are only superficial, and you’d actually pay more if you study the deal carefully.
Enjoy No Hassle in Payment
Credit unions eliminate any confusion when it comes to payment collection because your servicer is unlikely to change over time, Wasatch Peaks Credit Union explains. Whoever’s your servicer might sound unimportant at this point, but dealing with the same company or institution since day one could actually you save you money, time, and energy down the road.
If your servicer keeps on changing over time, you might get confused where to send your repayments. This could result in late fees, blows to your credit report, and several other headaches that come with it.
Expect Your Credit Union to Work with You
In Utah, a number of products are out to cater to all credits and financial situations. However, no lender would be more willing to make compromises and develop special programs just to help you save money.
For instance, a credit union might provide you a home loan in Ogden or Salt Lake City with high LTV and more borrowing options to cover your closing costs. It may sound too good to be true, but cooperative-members actually do enjoy this kind of deals.
Credit unions aren’t yet as popular as they should be, but their share of the pie continues to become bigger as days go by. In time, these not-for-profit institutions would be the first choice in the mortgage.