If you know anyone who has recently tried to buy a house – good luck! Due to the economy, interest rates are climbing, and it is difficult to find a good interest rate in this market. While there are many options for acquiring a mortgage, people often forget that their best option is through a credit union. According to Life Tracker, credit unions have a variety of options that can better suit potential homeowners.
Credit unions have gained popularity for being a trusted source for mortgages. Credit unions accounted for 9 percent of all mortgage originations. What makes credit unions different than banks is that credit unions are not-for-profit organizations that have specific membership requirements. Credit union members are the collective owners of the institution, so they are owned by the people that utilize them. Credit unions typically offer lower rates, easier approvals, greater personalization, and so much more.
Mortgages are a big undertaking, so making sure you secure the best deal is important. Do your research to see which credit union around you has the lowest interest rate.
Another way to improve your chance to receive a low-interest rate for your mortgage is to improve your credit score. Check your credit report using a free website to understand your current score and how many accounts you have open. A great way to make on-time payments is to utilize the automatic payments option. Some companies even offer a discount if you sign up for automatic payments.
Five Reasons to Use a Credit Union for your Mortgage
- Easier Approvals. Credit unions are focused on member needs, and they will work with you to find the best option that fits what you are looking for. For people with limited credit history or poor credit, credit unions go above and beyond to get you the rate you need to secure your dream home.
- Better Rates. Credit unions are known for offering competitive rates on their mortgages. Always shop around before making a final decision. Different credit unions can offer different programs that can save you several percentage points on your rate.
- Fewer Fees. Credit unions are designed to serve the interests of their members, so they typically have fewer and lower fees than other mortgage lenders.
- Faster Closing. Credit unions can move more quickly when it comes to acquiring a mortgage. This is because credit unions are locally-based organizations that put members’ needs first.
- Friendlier Service. Because credit unions are local, they offer customized service that is focused to fit your needs. You are not just a customer or a number at a credit union, and it shows with the fast and friendly service available.