When it comes to getting a mortgage, there are a number of factors to consider. What term are you looking for? What is the lowest interest rate that you can get? Where is that rate available? How long of a term are you looking for?
In the past, most people have turned to the big, commercial banks to get mortgage approval. However, contrary to popular opinion, commercial banks are not the sole financial institution that originates mortgages. Nor are they necessarily the best option, many people forget that credit unions are too an option when seeking approval for a mortgage.
The reality is that credit unions are known for providing their members with significantly lower fees than those of traditional banks.
When working with a credit union, you are likely to see significantly lower fees and rates. This is different from traditional banks, whose sole purpose is to garner as much revenue as possible for investors.
Unlike a bank, in order to work with a credit union, you must first become a member. While there are many credit unions in which you can join online, there are also hundreds of branches around the county. Due to the fact that there is a smaller number of members in credit union compared to customers at a traditional bank, there is more opportunity for a one-on-one relationship between members and customer service representatives.
In addition to building a relationship with the local service representatives, odds are that you will also only have to deal with a single major lender throughout the length of your mortgage, as opposed to multiple which often happens when working with major banks.
Perhaps one of the most attractive features of a credit union is that they tend to approve loans to members who have less than amazing credit history. This can be a life-altering decision, for members who have a blemish on their credit report or a lower income.
Additionally, some credit unions also offer special programs that are designed to assist first-time homeowners.
One example of this is a program in North Carolina that provides complete financing for up to approximately US $400,000. This program also provides participants to borrow additional funds to cover all closing costs and does not require the purchase of private mortgage insurance.