Q: What are the differences between credit unions vs banks for mortgages?
A: Credit union mortgages are becoming more and more popular as credit unions offer less fees and more affordable options for many borrowers. Credit unions can often offer more competitive rates, easier approval processes, less fees (points) and more personalization.
"Why do credit unions offer more competitive rates and charge fewer fees and points on home loans?"
Credit unions are membership-based organizations and are not for-profit like banks. This model allows for fewer fees and costs that are usually passed on to borrowers.
"What’s the approval process for getting a credit union home loan like? "
Credit unions tend to keep their loans rather than selling them. They also tend to offer loans to those with lower credit scores than banks would approve.
It’s easy to find out if you can get approved. Apply with Education Credit Union here.
"Do credit unions offer more personalized home loan options than banks?"
In many cases, the answer is yes. Credit unions are often based in communities for which they have a vested interest. Most banks are driven more by profits when it comes to the loans they offer. Credit unions, on the other hand, are typically smaller, more focused on their communities and, therefore, more focused on customer service tailored to the citizens of their communities. This lends itself to providing borrowers with more personalized options that fit their financial goals.
What is My Smart Money Lab? It's a free educational online resource that doesn't require you to give any information. We offer this high-quality online resource to everyone - you don't have to be a member! You'll learn financial responsibility, best practices and much more!
Benefits of My Smart Money Lab:
- Create custom "Playlists" of resources you are interested in
- Learn how to invest in your future
- Become informed on home buying, budget planning and other key financial foundations
- Much more!