When it comes to getting a loan to buy your new home, it is important to choose the best lender available to avoid over-paying throughout the life of your loan. There are many different situations where choosing to work through your New Bedford credit union is preferred to using a traditional lender or bank. As more people look to alternative solutions to the banking industry, such as credit union savings and checking for basic financial transactions, they are also looking to credit unions for home loans, car loans and investment opportunities as well.
What’s the Difference Between a Credit Union and a Bank?
If you have never worked with a credit union before, you might wonder what the difference really is between these two financial solutions. At first blush, you might think that they are exactly the same, as both offer checking, savings and loan opportunities to their customers. However, that is really the only thing that banks and credit unions have in common.
Credit unions are typically smaller and more local than banks, which can have customers in all 50 states and even external countries. Your local New Bedford credit union, for example, provides accounts to members that live or work in Plymouth and Bristol counties. Other credit unions restrict membership to workers from certain companies, members of labor unions and other specific demographics.
The benefits of membership within the credit union are specifically designed to address the needs, demands and situations regarding the members that belong to the organization. This helps the credit union to be even more beneficial to its members, who are not customers, but actual members who have a say in how things are run and who benefit from the profits made by the credit union each year. A credit union is a not-for-profit organization that has tax advantages and other opportunities that banks do not have access to under the law.
Why is a Credit Union Home Loan Better Than a Bank?
Ask a member of a credit union how they like their experience with their financial institution and you will most likely hear more positive reviews than you will get from banking customers. Even simple checking and credit union savings accounts offer more options, opportunities and deals than most traditional banking situations can provide. Once you start looking around a credit union home loan and start playing around with St Anne’s loan calculator on their website, you will quickly see the difference.
Credit unions have most definitely struck a nerve in the banking industry, as the American Bankers Association (ABA) lobbies against them on a regular basis, attempting to thwart attempts to expand lending capabilities. The banks argue that credit unions have an unfair advantage because of their lower operating costs and tax benefits. As a result, a credit union home loan will often have lower mortgage rates and lower closing costs than a loan from a traditional banking lender.
Consumers have noticed the difference as well, possibly by word of mouth from other New Bedford credit union members at St Anne Credit Union or through their real estate agents. In just a three year span between 2006 and 2009, the mortgage volume for credit unions nationwide increased from $55 billion to over $96 billion, all while other lenders were scrambling to keep their heads above water in the real estate market.
Other Benefits to Choosing a Credit Union Home Loan
In addition to the savings that you will see from the first time you run the numbers on our St Anne’s loan calculator via our website to the day you make your last mortgage payment, there are other benefits to choosing to use our local New Bedford credit union. As a member, you also gain access to increased opportunities through our checking and credit union savings accounts, annual Christmas Club Savings program, money market accounts, certificates of deposit and IRA retirement savings options.
Additional benefits include more personalized service, faster closing options, lower mortgage interest rates, reduced or eliminated fees, better rates on auto loans and other credit opportunities, higher payouts on certificates of deposits, money market accounts and more. While there are some slight differences in the way that your New Bedford credit union goes about setting up the various loans and other programs available compared to what you might be used to at a traditional bank, the savings and other opportunities make it worth learning to use something brand new
To find out more about how the St Anne New Bedford credit union works, as well as details about our credit union savings and checking accounts, as well as investment opportunities and credit union home loan and auto loan lending, give us a call or drop by our location to meet with our team of knowledgeable customer service agents. We are here to help and answer any questions that you might have about what it takes to get a credit union home loan for your new home purchase.