Integrity Residential Brokerage LLC

Should You Finance with a Credit Union?

by Catherine Marrone 03/02/2020

Image by Pete Linforth from Pixabay

Property buyers today may think of a credit union as an alternative form of lending and ultimately meant for people who don't fit the stereotypical borrower. But this assumption may a little unfair once you learn the facts. Credit unions present several unique opportunities that you simply won't find anywhere else. We'll give you both the good and bad, so you can make a better decision. 

A Non-Profit Oasis

As a non-profit institution, credit unions tend to have better rates than traditional banks. Plus, they're a little more personal than a regular bank in that they're investing in a single community as opposed to the whole country. So while you may not get the level of sophistication you would from a well-known bank, you will get the kind of personalized service that's hard to find today. 

Signing Up

Before you finance a property, you first need to qualify for your credit union. This essentially means proving you're connected to the credit union somehow. Often, it's based on where you live, but you may be able to join based on anything from your employer to your church to your family members. Before you dismiss your eligibility, talk to a credit union officer to see if there's a connection.  

Once you qualify for the institution, you'll need to become an official member. To do this, credit unions typically have its customers purchase shares in the organization. (These fees are generally affordable and they're the key to securing your membership. 

The Specifics

The practical advantages of a credit union mortgage are the flexible terms and requirements as well as the reasonable fees and rates. Plus, the credit union staff tend to take into account the relationship you've built with them. So while a national bank will encourage you to apply for a mortgage through the company, the fees may not change significantly from those of a stranger — regardless of your track record with the bank.

Why Skip the Credit Union

There are a few reasons not to finance with a credit union. For one, a credit union isn't going to have as many products as a bank would, which could inevitably cause you to miss out on a worthwhile opportunity. It's also likely to be a more traditional style of banking, meaning you may not have options for online banking. And as with a regular bank, a credit union may change leadership, which can, in turn, change the terms of your mortgage for the worse.

Regardless of where you finance, it's probably worth discussing your options with a credit union. As you shop around, you'll get a better sense of which products and terms are right for you. 

About the Author
Author

Catherine Marrone

Hi, I'm Catherine Marrone and I'd love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional offer their expertise and guidance. Purchasing or selling a home is one of the most significant financial decisions most people encounter. I'm ready to put my expertise to work for you! 

SELLERS When you request a comprehensive market analysis (CMA) on your horse farm or residential home, you benefit by working with a real estate agent that understands these type of properties. There is no substitute for 30+ years of experience!

BUYERS I look forward to matching you to the equestrian property, single family home or condominium for sale that is right for you. I will deliver the highest level of professional service as well as step-by-step guidance throughout the search, contract and inspection phase, to closing and beyond.   

When I'm not helping my clients with buying or selling a home, I can usually be found working around my horse farm or riding my Andalusian dressage horses. A recent passion of mine is scuba diving and once a year I travel to somewhere tropical and spend more time underwater than above.   

Please feel free to reach out to me at any time. I'd be honored to put my real estate experience to work for you.