What are the Pro's and Con's of getting a Home loan through a Credit Union?

Question

What is the difference between a Credit Union, Bank, and Finance Company? I think a Finance company charges higher interest but I'm not sure.

Answer 1

Credit unions typically are more flexible, and almost always charge lower rates than banks.

Finance companies are designed to do loans that most banks can't or won't do (even if the finance company is owned by a major bank!). High risk, high rates. Avoid them at all costs.

Credit unions are great, and they treat you so much better than a typical bank does.

Answer 2

The two best that I suggest are your bank and credit union where you have your checking and savings account.
I will not comment on finance companies.

1. The bank and credit unions usually have comparable rates, and where ever you have your checking account, they have an interest in keeping you happy.
2. Both usually have the lowest rates to buy a home.
3. The best loans are fixed rates, for the longest time...usually 30 years fixed mortgage.

4. There are closing costs also....and are in the thousands.

5. Try to have at least 20% down for the price of the house, in order to avoid PMI insurance which is mandatory...unless you have the 20% down...(called down money sometimes).

6. If you have less than 20% down you may try FHA loans, and they are also through large banks.

7. The house you buy should have conditions (that protect you) that it must appraise out for the amount you want to pay....this way you are protected if it appraises lower by the bank or credit union appraiser and can get out of the purchase. Sometimes we think a house is worth it, but the market has dropped, and that protects you...if you make the offer conditional on obtaining a mortgage.

8. Most of all deal with a reputable real estate person, who qualifies you ahead of time...and helps get you what YOU want....not just what's on the market.....sometimes they call you first if something is going to come on the market in the location, location and location....you want ...very important.

Take your time....it may start you on your way to a very good investment...that lasts a lifetime!

Answer 3

A mortgage is a mortgage is a mortgage is a mortgage. Unless you're taking cash from your financial savings account, you're now not a coins purchaser. Pros: Your banks fee could also be cut down than that of the dealership supply(s). Walking in pre-accredited removes the pressure of what occurs after getting decided on a automobile. Cons: The fee possibly bigger. You nonetheless have a per month fee. Suggestion: Shop your nearby banks then examine it to the premiums the dealership presents.