While many banking institutions have become very hesitant about lending money for people looking to purchase a home, the same may not be said about credit unions. One of the reasons why traditional banks are leery about lending where a facility like ARC Federal Credit Union may not be is because of the different exposures that banks had during the housing crisis that credit unions didn’t; most notably, the involvement that traditional banks had in subprime lending.
If you’re looking for Home Loans Hollidaysburg PA, know there is a significant difference between borrowing money from a traditional bank and credit union. With traditional bank’s intrepidation about writing home mortgages, even people who technically qualify for a loan sometimes have a hard time securing that loan. They are often times required to pay much more of a down payment than they would’ve done in the past and sometimes, they are subjected to higher rates of interest. Fortunately, if you’re looking to borrow money for the purchase of a home from a credit union, you may not run into such difficulties.
First of all, you will need to be a member of the credit union you’re looking to secure a loan through. While membership in a credit union isn’t a huge deal, you will need to find the credit union where you meet the requirements for membership. Once you’ve done that, you can proceed with looking for a loan. The great thing is that if you meet the qualifications of the loan such as a respectable credit rating and sufficient down payment, there’s nothing in the way of impediments to you getting the loan you’re looking for.
The added bonus to getting a loan through a credit union is they typically have more favorable interest rates, as well as more favorable terms that traditional bank simply can’t offer. This is because a traditional bank is owned by certain individuals and shareholders where credit unions are owned by its members. The executive directing staff of credit union is only there to facilitate the management of the credit union, not its profitability. The benefits of the credit union’s profitability correlate to better interest rates and better terms for the credit union members such as good terms on Home Loans Hollidaysburg PA.
