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Buying a house is both exciting and stressful. You have to find the right property and secure a good mortgage to finance the purchase. There are two main types of financial institutions that supply mortgage loans: traditional banks and local credit unions. While banks may be the first option you think about, credit unions offer a number of unique benefits. Here’s a guide to financing a home through a credit union rather than a traditional bank.

What to Know About Mortgage Loans From Credit Unions

Credit Unions Are More Accommodating

When discussing mortgage loans with a bank, they’ll consider your credit score. If it’s too low, you may be denied the loan or offered a very high interest rate. However, at a local credit union, they understand that everyone’s financial situation may not be ideal. They’re more willing to work with individuals with lower credit scores, so more people can become a homeowner.

You May Qualify for Lower Rates

Credit unions are there to serve the community. As a result, they work to offer mortgage loans with lower premiums and interest rates. Standard large-scale banks primarily want to increase their total revenue and are less concerned about passing savings onto their customers. The lower your rates, the more money you’ll save over the life of the loan.

They Get to Know You

Mortgage LoansCredit unions treat their clients as valued members. Their staff gets to know you, so they can offer the best services possible. When you work with a local credit union to finance a new home, they’ll become your point of contact for everything related to the mortgage. If you have a question about payments or concerns about the interest rate, or you want to refinance a bank-owned mortgage with one backed by a credit union, you’ll have a local person to speak with.

How to Decide

If you’re looking for a convenient and local expert in mortgage loans, then a credit union is the best choice. They’ll be more willing to work with your financial situation and establish a relationship. You’ll have peace of mind knowing that someone familiar with the account will always be there to answer any questions. Traditional banks are ideal if you’re looking for a vast network of branches, but they often lack the personal touch and low service fees associated with credit unions.

 

Finding a mortgage to finance the purchase of a new home doesn’t have to be difficult. At North Jersey Federal Credit Union in Totowa, NJ, their experienced team will help you get the best mortgage loan for your needs and financial situation. Learn more about their services online. Call (973) 785-9200 to schedule a consultation.

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