What Is a Mortgage Loan at a Credit Union and How Does It Work? | Rivermark Community Credit Union

If you’re looking to buy a home, you’ve probably already seen how overwhelming the prices can feel. Depending on a number of factors, such as location and size, homes in your hopeful area could be listed for more money than you have anywhere near your savings. But don’t worry! There are ways you can pay off your home over time.

Not many people can buy a house straight out-of-pocket. For most home buyers, a mortgage loan is an essential step to moving where and when they want to. With approval from a mortgage lender, you could be moving into your new home in no time, but you’re going to need to make sure you’re going to the right lender.

A credit union mortgage loan comes with many perks. Rivermark Community Credit Union offers its members low rates, financial resources, and knowledgeable and readily available staff. If you’re wondering what a mortgage loan with a credit union entails and how it will work, we have answers for you.

What is a mortgage loan?

Because it’s not common for people to pay for their homes in full, a mortgage loan is a way for people to bridge the gap between what they’re financially capable of paying now and what they would be able to pay off over time. With a mortgage loan, a person can receive the funds needed to buy the home, with the promise of paying the lender back within a certain time frame.

How does it work?

Once you become a member of a credit union, you can speak with a representative about applying for a mortgage loan. When you go to that meeting (or when you apply online), you’ll need to have certain paperwork with you, such as your pay stubs, bank statement, and credit history. If you’re approved for the loan, you’ll be able to move forward with buying the home.

The option of getting a mortgage with a credit union gives people the ability to buy a home, but don’t forget about the need to pay the loan back. A credit union lender will require a monthly payment to be made with interest for a certain number of years, usually 15 or 30. With the approval of a mortgage loan, the borrower will have possession of the property so long as they’re able to make timely payments, but the lender will technically own it. Once the loan is paid off, the borrower will then own the home. Makes sense, right?

How is a mortgage loan different at a credit union?

There are many differences and advantages that come with credit union mortgage loans. Lower rates and more secure financing are just a few of those differences.

Because credit unions are not-for-profit institutions, they can offer lower rates on mortgage loans than other financial institutions. Credit unions are exempt from paying federal income taxes, and their lack of emphasis on making a profit allows them to offer some of the lowest mortgage rate loans possible.

Another difference between a credit union mortgage loan and a mortgage loan from other financial institutions is that a credit union is less likely to sell your loan. At for-profit financial institutions, lenders are likely to sell your loan to other lenders. This can create issues with payment schedules, as well as mistrust in your lender. Credit unions know there’s a comfort that comes with knowing you’ll be using one lender for the length of your loan.

What are the benefits of getting a mortgage with a credit union?

• Access to other services

Once you’re a member at a credit union, a mortgage isn’t the only thing you’ll have access to. Your mortgage will require you to give a lot of information, which the credit union will have on hand and be able to apply to other services should you need them.

For instance, many people prefer to utilize all of their banking services through a credit union once they become a member. Savings and checking accounts, credit cards, and financial resources are all options that you can take advantage of at the credit union you get your mortgage loan from. You’ll also have access to certain promotions and partnerships credit unions, such as Rivermark, offer on things like car loans and investments.

• More likely to get approved

One of the most important things that lenders look for when it comes to approving people for a mortgage is their credit score. It holds a lot of weight in their decision-making and could easily be the reason you don’t get approved. But at a credit union, they’re more likely to hear you out. Having a low credit score doesn’t automatically mean you won’t get approved for a mortgage loan at a credit union.

The benefits of being a member are that you can speak to people face-to-face, form relationships, and be given the opportunity to explain your credit score along with other reasons for why you should be approved. This option alone gives many people the opportunity to buy a home when they wouldn’t be able to otherwise.

• Great customer service

If you have questions about your mortgage loan, the process of applying, or your payment schedule, it’s nice to be able to talk to someone. At a credit union, this option is available to you at local branches with knowledgeable staff. Credit unions can provide great customer service because they’re able to put their members’ needs before their need for profit. At Rivermark, we pride ourselves in our kind and thoughtful approach to helping you get a mortgage loan.

With a credit union on your side, getting a mortgage loan can be a faster and more accessible process than you ever thought it would be. If you’re looking for a mortgage loan in Oregon, Rivermark Community Credit Union can get you one step closer to purchasing your dream home.