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What are your thoughts on acquiring a mortgage loan with a CU? I've researched on the net somewhat and got the impression that they are the last resort for a mortgage loan. Is it better and safer dealing with an actual bank.
I used a credit union once, and used banks before. The credit union had a lower interest rate and no banks could come close to that rate. Ends up the closing fees were lower with the credit union loan also. Had the loan for several years and then sold the home.
It was just a normal mortgage like any other as part as paperwork and payments.
OP, credit unions operate under federal lending laws just like any other lender. As stated in Post #2, their rates may be better than many banks (and most on-line lending institutions).
"Better or safer"? Not sure what you mean by that.
I have three CUs that I know of in my local metro area and there is likely many, many more representing specialized groups such as teachers, law enforcement, etc. All three of those credit unions are very active in providing mortgages to this entire metro area and the surrounding rural areas. All three have excellent reputations within the lending community.
Every lender has their own internal policies that govern their mortgage lending activities (as permitted by Federal and state laws and policies). CUs are not different so you'll have to actually contact them if and when you are ready to apply of a mortgage.
In my opinion, CUs are an excellent choice as an option for a mortgage lender.
I financed one of my homes through my CU. My current home is financed through a bank simply because I wanted to go FHA, and my CU at the time didn't offer those.
If I were refinancing this house or if I were to buy a new one (these is likely to happen), I would definitely go through my CU.
I agree with TexasDillo. I do all my banking through my CU.
My current mortgage is with my local credit union. I did so primarily because I knew that they would never sell the loan (they keep a select group of mortgage loans in-house). When I wanted to drop the rate but not do a full refi several years ago (I already had a 15-yr. note), all I had to do was sign a single piece of paper and pay a one-time fee of $800. Easy-peasy.
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