6 Reasons to Get a Credit Union Mortgage as a New Homebuyer

If you’re accustomed to dealing with banks, you might be wondering why you should consider getting a credit union mortgage instead of a mortgage from a bank.

At Addition Financial, we’re accustomed to hearing that question. People have misconceptions about credit unions. We understand that – and we make it a priority to explain the benefits of joining a credit union instead of working with a traditional bank.

There are many reasons to consider a credit union mortgage. We’ve put together this list of six of the most compelling reasons to help you understand why we think credit union mortgages are best.

#1: Credit Unions Often Have Lower Fees Than Banks

The first and most obvious reason to choose a credit union over a bank for your mortgage is that it can save you money. Since many people don’t understand this, we’re putting this benefit first.

Banks are for-profit organizations. When they underwrite mortgages and loan money, their primary objective is earning money for their shareholders. They’re not interested in saving their customers money. That might sound harsh, but it’s true.

By contrast, the only owners of a credit union are its members. When you join, you become part of an organization that puts you first. Credit unions pass their savings on to their members and that means instead of worrying about profits, they’re thinking about saving you money.

#2: Credit Unions May Lend to You Even if Your Credit Isn’t Perfect

In the aftermath of the housing downturn of 2007-2008, banks have cracked down on potential borrowers. You’ll need excellent credit to be able to qualify.

Credit unions recognize that there are many reasons why a potential borrower might not have a perfect credit score. Financial hardship can occur through no fault of yours, and we don’t think that past difficulties should make it impossible for you to own a home.

Of course, you’ll still need to meet the qualifications of your credit union, but as a rule, you’ll have an easier time getting approved than you would if you went through a bank.

#3: Credit Unions Have Flexible Mortgage Options

Sometimes, banks can be quite rigid when it comes to mortgage terms and options. They may not be willing to bend much to accommodate your individual needs and circumstances. That’s fine if you can fit into the box they provide, but it can be a problem for some people.

Credit unions are accustomed to working with people who have had previous financial problems or who need creative financing options to help them afford a down payment. We can work with you to come up with an arrangement that will work for you and put the dream of homeownership within your reach.

For example, we offer special mortgage options for first-time homebuyers and a low closing cost option to help you afford the fees associated with buying a home.

The First-Time Homebuyer's Guide to a Mortgage

#4: Credit Unions Put Customers First

We think one of the biggest reasons to choose a credit union mortgage instead of a bank mortgage is that when you join a credit union, you become part of a family. Banks tend to be more concerned with volume and profit than they are with customer service.

At Addition Financial, it’s our job to work with our members to help them achieve their financial goals. In this case, we’re talking about homeownership. But we also work to help our members plan for retirement and save for their kids’ college education. We look at the big picture and help you navigate your financial future with ease.

#5: Credit Unions Provide Lifetime Service on Your Mortgage

It’s very common for banks to resell the mortgages they provide to government-run entities like Fannie Mae and Freddie Mac. Sometimes, borrowers are blindsided when they suddenly owe money to a new entity or their monthly payment increases.

Most credit unions aren’t in the mortgage lending business to resell the loans they provide. That means you can expect to get quality customer service for the life of your mortgage. And even if the credit union does sell a small portion of their mortgages, it's never done to the detriment of the member.

If you need to apply for refinancing, sell your home or just want to consider amortization options to help you pay off your mortgage quickly, we’re here to help. We’ll work with you for the life of your mortgage, providing you with the guidance and service you need.

#6: Credit Unions Tend to be More Stable Than Banks

You probably remember that during the recent housing crisis, many of the nation’s biggest banks and lenders needed government bailouts to prevent them from failing. What you may not have noticed is that credit unions weren’t in that mix.

As a rule, credit unions don’t need to be bailed out of trouble. That’s because they work with members to provide service and ongoing financial guidance. As a community organization, we’re proud to put our members first.

Credit union mortgages provide some distinct advantages that you simply can’t get with a bank mortgage. To learn more about our flexible mortgage options and get the information you need to join, please click here now.

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