While house hunting has its “ooh” and “aah” moments (fancy backsplash, anyone?), the question of mortgage affordability is at the back of most homebuyers’ minds. It’s no secret that purchasing a home in today’s market is tough, with first-time homebuyer loans and lower mortgage rates suffering in a competitive environment. To have a chance at your dream of home ownership, it’s important to choose the right lender. But with many home financing options out there, which one do you pick?
A credit union mortgage might be your solution. In this blog, we’ll explore the differences between securing funding from a credit union versus a traditional lender and the credit union mortgage loan benefits you can expect to see.
People Driven Credit Union (PCDU) has been helping homebuyers with home financing options for almost a century. Apply for one of our credit union mortgage loans, and you’ll receive personalized service, competitive rates, and flexible terms. We’re ready to walk on the path to homeownership with you!
Credit Union vs. Bank Mortgage: The Credit Union Advantage
Credit union vs. bank mortgage? Big national company vs. local business? All online vs. in person? There are lots of questions to answer when considering how you’d like to finance your new home. While there are certainly many viable options for lenders, a credit union sets itself apart from a traditional bank in several important ways. These differences translate into benefits.
Here are the big differences between credit unions and traditional banks:
Traditional Banks |
Credit Unions |
| For-profit | Not-for-profit |
| Owned by shareholders | Owned by members |
| Invest profits in a variety of places, including real estate, bonds, and stocks | Invest profits in a variety of places, including low-risk investments, local projects, and back into member services |
| Sometimes community-focused approach (depends on the bank) | Community-focused approach |
| Prioritize maximizing profits | Prioritize member benefits |
Key Benefits of Choosing Credit Union Home Loans
Now, let’s see how a credit union’s unique qualities translate into benefits for credit union home loans and homebuyers who want mortgage affordability.
Competitive or Lower Mortgage Rates
Everyone wants lower mortgage rates, right? Especially in today’s homebuying climate, getting the lowest rate possible is essential for ensuring affordability.
A credit union’s not-for-profit structure means that any profits made are returned to members in the form of better rates. Credit unions also have lower overhead costs than banks, which allows them more flexibility with the rates they can offer.
So many factors play into your mortgage loan rate, including creditworthiness, inflation, and more. Get your PDCU rate by using our personalized mortgage rate calculator.
Lower Fees and Flexible Terms
The non-profit nature and lower overhead costs also translate into lower fees and more flexible terms. Credit unions often have:
- Reduced or waived fees
- Flexible repayment options that fit diverse financial situations
- Varying lengths of terms
For example, to fit the needs of all our members, PDCU has a variety of loan products, including fixed rate, variable rate, and FHA, that you can get in a variety of loan terms, including 15, 20, or 30 years.
Personalized Customer Service
One of the biggest benefits you can expect from working with a credit union is personalized service. As companies focused on providing the best services to their members, credit unions often make the process of securing a mortgage faster and more straightforward.
PDCU takes personalized service seriously, going above and beyond to answer your questions and give you peace of mind on your mortgage. We offer many resources for homebuyers, including our Homebuyer Bootcamp. Additionally, our dedicated mortgage specialist offers one-on-one guidance, taking the time to understand your needs and financial goals.
Community-Focused and Member-Owned
We’ve already touched on this a little bit, but another benefit of going through a credit union for your mortgage is that you get the satisfaction of partnering with a company dedicated to supporting local initiatives and community development. In a way, you’re helping your community just by choosing a credit union over a bank.
PDCU is proud to be involved in our Southeast Michigan community. We get involved in a variety of ways, including providing financial education, collecting supplies for food drives, and more. If you have an idea of how we could get involved, give us a call and let us know!
How to Get Started With Your Credit Union Mortgage at PDCU
Shopping for a home can be stressful. Let PDCU alleviate some of that stress with one of our credit union mortgages. Here are steps to take if you’re looking to finance your home with us:
- Explore our options and discover your rate with our online calculator.
- Get a personalized mortgage quote.
- Reach out to our mortgage specialist for advice and support.
- Apply for a loan online or in person.
- Quickly respond to all requests for documents.
- Pay all bills on time because a credit report will be pulled before closing.
- Don’t apply for any other credit accounts.
- Shop for insurance for the new home.
Credit union home loans offer homebuyers significant advantages, including lower rates, flexible terms, and personalized service. PDCU is ready to walk with you every step of the way. Reach out to us with any questions. We can’t wait to welcome you to your new home!
