These days it is straightforward to get a mortgage anywhere. There are banks, brokers, and online sources which can give you a mortgage. Especially in the last decade, even insurance companies have started to give out mortgages to the public or their clients. There are benefits from getting a mortgage through a credit union.
Availability to other financial services
Especially these days, many companies work with different things to satisfy the needs of their client. Anything you want can be done through these companies. But when it is talked about financing, the best advice is to have a single type of service from one provider. This has a significant advantage, and local banks or credit unions can do that.
This means that you have access to a home equity loan or home equity line of credit. Let's say you want to buy a house, then you can get a home equity or HELOC loan. This strategy is most commonly implemented when buying something in order to avoid private mortgage insurances, which can be really expensive.
Credit unions are a natural provider of loans that are home equity or HELOC loans. If you are already in a partnership with them, it will be much easier to get a loan from them. Recently, credit unions have also started to give loans and HELOC with first-time mortgages.
Even after a while, you may be interested in requesting another loan in order to renovate your home. This can be done with secondary financing if you are in a partnership with credit unions. This is beneficial because they already have your financial status and all the required information, so it will be much easier for them to give you the secondary financing.
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Credit unions usually do not sell your loan
If you have a mortgage, then you will probably be aware that lenders tend to sell out your loan to different servicers or lenders. This can especially happen to you if you have a thirty-year mortgage loan. This is not a threatening situation for homeowners, but it can be messy. Imagine every time your mortgage is sold to someone, you have to start paying to new lenders.
Credit unions are not doing that. What they do is they give you in-house loans that give them money as time goes by. With that, they are generating more and more money as time goes by. So, it is not beneficial to them selling out your loan to someone else. This means that they will be your lender until the end of the loan.
Direct contact if there are any issues
One of the advantages of getting a loan from credit unions is that you can always go to either of their branches and request a meeting whenever you have a problem during the application process.
It is not said so frequently, and many companies do not admit this. Still, the mortgage process can be really complex, and many problems can occur during the application process. Something can go wrong at any time, and often it requires direct contact to fix the problem right away. Without physical contact, any problem is harder to solve for sure.
Partnership with credit unions may give better rates
If you are a customer and a partner with credit unions, there is a good chance that you will get better credit union mortgage rates and also a reduction in closing fees and costs with your mortgage. In comparison, other lenders tend to sell out your mortgage, and sometimes mortgage rates can be enormous.
Credit unions have more advantages to this. The difference is not huge initially, but as time goes by, it is definitely more favorable to you if you go to them right away. They often offer lower in-house loans to their members. They work as a non-profit company, which is the reason why their rates are slightly lower than the others.