Unlike banks, credit unions are owned by their members, which means the funds come from them. Like banks however, credit unions are also a one stop shop with offer products and services are available. A lot of credit unions require membership (having a savings and/or checking) in order to apply for a mortgage.
Banks receive their funds from their customers and investors. They offer a variety of products to fit the needs of their customers. Banks are often viewed as a ‘one stop shop’ as people with savings/checking often receive their loans as well so everything is housed in the same place. Banks usually have a more conservative underwriting process and it may take longer to get your loan approved. Government backed loans, such as FHA, USDA, VA, may not be available if you use this option.
Unlike banks and credit unions, the only service that mortgage lenders provide real estate loans. They receive their funds from investors and banks. In most cases, the entirety of the underwriting process will take place in house as that is what their staff is trained to do. This may shorten the process and allow you to close sooner.
Unlike the other options on this list, a broker doesn’t directly loan you the funds for your mortgage. Instead, they act as a kind of ‘middleman’ between a bank and the person obtaining the loan. They can do a lot of the legwork in terms of finding the lender that will work best for you, especially if your credit is less than perfect. When you go directly to the lender, they will only look at their available options.
Cyprus Credit Union offers a wide variety of mortgage services and products to fit all of your needs, whether you’re a first-time home buyer or a seasoned real estate investor. To learn more click HERE or call (801) 260-7600.