Borrowers seeking a mortgage or looking to refinance increasingly turn to credit unions. These financial institutions are expected to surpass a record-breaking $100 billion in mortgage loan originations this year.
The growth has mostly been attributed to a surge of refinancers and a growth from consumers’ “disillusionment with big banks,” The New York Times reports. Credit unions may offer slightly lower closing costs and be willing to look at a minimum credit score of 625 when other conventional banks are stuck in the 650 range.
Credit unions mostly keep their servicing on all their mortgage loans in-house – an incentive for them to be more responsive to their customers. Here in Berks County many of the credit unions are conveniently located at or close to where people work increasing the desirability to do business with them.
As a broker the loan process is a bit more cumbersome since the processing is down in a different state. It is my opinion; explore all of your options especially if you feel your credit score is not up to par. Always shop around to find the better mortgage to fit your specific needs.