Buying a New Home? 5 Reasons To Partner With a Credit Union

For the Home

If you have decided to take the plunge and buy a home, you should take great care to get the right lending partner. It’s is a big decision with lots of nuances to consider. With thousands of different banks, credit unions, and even online options, how will you pick the best financial partner for your needs?

First, let’s look at your different options. Here are four entities that you can get a mortgage from:

  • Credit Unions
  • National/Regional Banks
  • Community Banks
  • Mortgage Brokers

While each of these options can provide you with a loan, there’s one option that stands out – credit unions. Find out five reasons why a credit union is the perfect lending partner.

The Top 5 Reasons You Should Choose a Credit Union for Your Mortgage

1. Rates may be Lower.  Credit unions, unlike banks, are not-for-profit organizations. And, because banks answer to their shareholders for how they’re generating profits, you’ll usually find higher interest rates at banks, compared to credit union lenders.

2. Fees may be Lower. When you partner with a credit union, you’ll typically find fewer and lower-cost fees. Fees are in place to cover processing costs rather than to generate profits for the bottom line.

3. You’ll Receive Personal Service. Credit unions tend to place a greater focus on understanding the unique needs of each member and promoting their financial wellbeing. Being member-owned means they’re also member-focused. So, with a credit union, you’re likely to get a more personal, customized experience.

And, because credit unions invest in a more personal approach, they may come up with a better product for your needs. The borrower doesn’t equate to dollar signs and profit margins.

4. Credit Unions are Local. Big banks and online options limit the face-to-face interaction you have. Credit unions, on the other hand, are typically local entities, handling the decision and underwriting process right there. You can do most of the paperwork online, or you can walk into the credit union and work with the same people throughout the entire process. This provides borrowers with peace of mind that their application and account service aren’t being shipped off to some corporate headquarters states away.

5. Your Service isn’t Outsourced. Did you know mortgage loans are commonly sold to another lender? The terms of the loan cannot change, so the real issue is who is servicing the loan. Some credit unions might outsource service as well, although it isn’t as common as with banks. Directions Credit Union is one that maintains the servicing of all their mortgage loans. This means that for the life of your loan, Directions would be your primary resource for any mortgage questions, and they will process your payment.

When you partner with a credit union to get your home loan, you’re likely to have a positive personal experience. Direction’s Credit Union is the preferred financial partner for many satisfied members and would be happy to work with you. Membership is easy and open to anyone in the communities we serve, so don’t let that be an obstacle if you don’t currently have a relationship with us.

Finding a home that meets your needs is often an exciting but emotional journey. Let us make the financial part easy. Call 888-508-2228 to schedule an appointment or visit for more information.