What's the difference between getting a loan from a bank or a credit union?

Good Morning! You can always weigh your options as to what a Bank, Credit Union, Mortgage Broker, Mortgage Banker, etc, can offer you, but you should consider the professional advice that you may or may not get from each of these entities. If you only want to shop an interest rate without the service and professional input to review your actual short and long term goals for the financing, then you can choose the best rate offered. You need to make sure to compare the rate quotes based on the rate, fees, etc so you can make an educated decision. If you would like more information or to go over your loan scenario, I'm here to help! Enjoy the day!

There is not an "automatic" one better than the other... But you best bet is not a bank, nor a credit union. They can only offer their own products. Your best best is with a mortgage broker. They can offer the products of multiple lenders, which will always get you the best deal. www.WI-MortgageBroker.com

Typically, banks and credit unions have the same limitations. They are bound by their own guidelines.. When dealing with a bank or credit union, that particular institution has their own set of guidelines when it comes to lending.. if you don't fit in their small defined box, then you don't get approved.. dealing with a broker on the other hand gets you access to numerous lenders with varying guidelines, so the broker can seek out the best loan for your particular scenario.. since no two loans are alike, your far better off shopping with the broker than the local bank or credit union..I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Since Credit Unions are member owned, they do not strive for obscene profits like a bank. They return profits to their members through lower rates on loans and higher rates on deposits. They also tend to be a little more conservative in their underwriting. Plus, they super protect themselves against losses by using what is known as a "Cross-Collateral Security Agreement" Read my blog post at https://www.lender411.com/mortgage-articles/4314/dont-borrow-where-you-bank/. You may want to thinks twice before borrowing where you bank. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Credit Unions are typically portfolio lenders, meaning they are Non-Agency lenders and are not typically affiliated with Fannie Mae or Freddie Mac. Portfolio options usually result in higher interest rates. It's a tough question though as all CU's operate differently. It really depends on who can offer the best loan options & with the best service. The lending platform isn't as much of a concern. I lend in Ohio and would love to answer and specific questions and also run some quotes by you if you would like. Feel free to contact me directly through my profile on Lender411. Hope this info helps!

In my experience TimHoward is correct. Many of the offers I have reviewed from Credit Unions in the Cincinnati area are generally adjustable rate loans (5 year seems to be the most common), which wouldn't make much sense for most people. Fixed rates are so low currently (although slightly higher than they were 30 days ago). If you have a good idea of your credit scores and loan parameters you could easily call a couple of banks/credit unions/mortgage broker and get a general rate/fee quote. This should give you a good idea of who is more competitive, and who you would prefer to work with (trust, advice, etc.). I'm in the Cincinnati area and can be contacted through my Lender411 profile. Good luck.

The fact that Credit Unions have some better benefits than banks is a given, as they are structured that way. On the other hand, if they are paying more for their money (paying higher interest rates) then you are likely to find they are charging a bit more on their loans as well (generally speaking - there could be exceptions). Depending on the credit union - and your local licensed mortgage broker, you should be able to find better programs there than at your local bank (unless your home loan is with them already.)

Credit Unions can be expensive. I refinanced a friends mortgage, and she got a quote from her Teachers Credit Union too. The Credit Union's fees were over $13,000.00 more then mine, and the interest rate was also higher.

Credit Unions and Banks are different entities, You want to work with the loan officer that best fits with what is important to you( do youlike to have personalized service, is rate the only thing that matters, etc...) call a couple of different banks and credit unions, see whichone is a good fit for you.Hope that helps,Pete

There is no difference to you as long as you assuming all things are equal between the bank you are talking to and the credit union.

I beg to differ with William, most if not all lending institutions, and by that I mean Banks, Credit Unions, Mortgage Bankers and, yes, even Brokers must conform to either Fannie Mae or Freddie Mac Guidelines. There may be some overlays from some lenders. Therefore, given that Brokers get their loans from these same lending institutions they are subject to those same guidelines and overlays. When looking for a mortgage you should do your due diligence and shop a verity of lenders and not restrict yourself to just Brokers. My name is Elden Lewis and I am a Senior Mortgage Loan Officer based I Indianapolis, IN with branches in Ohio. Call me if I can be of assistance

Get a detailed quote from a local loan broker, as well as a bank and a credit union.

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