Home Buying in Seattle>Question Details

Emilia, Home Buyer in Princeton, NJ

I am thinking of using a credit union for my mortgage and am pre qualified.

Asked by Emilia, Princeton, NJ Mon Jul 9, 2012

What are the pros and cons of a mortgage loan with a credit union? Would you recommend?

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The main con which comes to mind is basically a worst case scenario situation. If your situation turns south in the future and you need a loan modification or short sale in the future, a CU might be more difficult to work with. That isn't universal, but historically credit unions have been tougher to work with.
1 vote Thank Flag Link Mon Jul 9, 2012
A credit union is a great alternative for a home loan. In many cases, the credit union does not underwrite their own mortgage loans. Often, a credit union will establish a working relationship with one or more local lenders, but arrange for competitive terms for their credit union members.

You should also contact a local mortgage broker to learn what loan programs are available to you from among the lenders they represent. Brokers typically have more loan choices than a bank. I also recommend talking to a small, local bank. You could also investigate mortgages with a larger commercial bank ---where you do most of your banking, for example.

Don't make the mistake of committing to a lender before you know your options. Too many buyers sign-up with the first lender they meet, according to a recent study. Get all your options first, then choose the lender that has the best loan program for you.
0 votes Thank Flag Link Mon Jul 9, 2012
My advice is to get up to 3 Good Faith Estimates. You will generally find CU rates a bit higher than standard mortgage brokers and banks. Find a loan officer that you can work with...customer service.
Rates are beyond great out there, so it's hard to go wrong.
0 votes Thank Flag Link Mon Jul 9, 2012
You are asking a lot of questions here online & most of them need long serious answers. I have been a real estate broker for 15 years & a loan originator for 5 years & would be happy to consult with you if you would like to do that. give me a call any time during the day, Tuesday- Friday at 206-841-9976. I consult with people on a regular basis. As to this specific question, I would always work with an independent loan originator since they would have lots of options. For myself, I can do a loan at 63 different lenders. 206-841-9976

Good luck in your move,
Jirius Isaac
Web Reference: http://tristarfinance.com
0 votes Thank Flag Link Mon Jul 9, 2012
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