Many consumers are now choosing to make the move from a traditional bank to a credit union, such as ARC Federal Credit Union, for all of their banking needs. This is especially true for those looking for mortgage loans in Altoona, PA. Banks are typically privately owned institutions, ones designed to make a profit, as the banks are ultimately responsible to their shareholders. Credit unions, in contrast, are owned by their members, so each account holder is also a shareholder, allowing the members to obtain better rates on a variety of financial products, such as home loans.
Before you can make use of a credit union, you must become a member. The membership requirements vary by credit union, but these types of institutions are becoming more common. You may find that you can join a credit union simply because of where you live. In addition, some credit unions allow you to join if you work in a particular area or if you attend religious services in that area. Banks typically allow anyone to make use of their services, yet their lending requirements tend to be stricter, making it harder for some to obtain the desired home loan.
Credit unions usually offer lower interest rates on mortgage loans in Altoona, PA as they are a nonprofit organization. In addition, you may be able to qualify for a loan even if you don’t have a down payment or the money to pay for closing costs. Most banks require you have some money to put down and the necessary closing costs, thanks to the tightening of lending standards, but this isn’t the case with a credit union, as they have more flexibility. Be aware, however, that there is a trade off, in that the credit unions may have fewer mortgage loan options.
In addition, before you decide a credit union is the right choice for you, you need to understand that customer service differs when you are using a credit union. You may find you have limited access to your accounts online, and customer service may not be available 24 hours a day, seven days a week. Also, the credit union may not offer online bill pay. Keep this in mind when selecting a mortgage lender. There are advantages and disadvantages of each that you must keep in mind for great results. Click here to know more.
