First Time Buyers -
Go To Job Credit Union or Contact Mortgage Broker
Looking for your first home? As First Time Buyers, should you go to your Job Credit Union or Contact a Mortgage Broker? Several ActiveRain Mortgage professionals offer answers to that question. Let's start in alphabetical order this time. We received answers from Eric Boucher, Rodney Mason, Joe Petrowsky, David Shamansky and George Souto.
Eric Boucher, after ten years in Mortgage work, now provides service to the Real Estate Community, calling himself the FHA/VA Condo Project Approval Guy.
"A Credit Union can be a great place to get Mortgage loans; however, I am a huge proponent of using Mortgage Brokers due to their large selection of programs and lenders.
"Often Credit Unions offer their own products and that is it. Many, such as in my state of Connecticut, don’t offer government-backed loans such as FHA, VA and USDA or even state-run programs like CHFA.
"While rate is important, monthly mortgage insurance can be a determining factor in choosing the best program for the Borrower. The Credit Union may offer a lower rate but the government-backed program offered by a Mortgage Broker might have lower Mortgage insurance, or even none, offering a lower monthly payment.
"Speaking directly to rate, Lenders’ rates will fluctuate from time-to-time based on a number of factors, including current loan volume. If business is slow, a Lender may reduce its rates to below those of the competition to bring in more applications. Of course, the Lender may do the opposite when volume is very high. Having access to a wide variety of Lenders and programs gives borrowers more options which may lead to a lower monthly payment."
Rodney Mason, Atlanta GA, is a Senior Loan Officer with Prospect Mortgage.
"Credit Unions are generally pretty risk adverse. They really only want the "A" paper loans that are of the highest quality.
"Typically, a Credit Union is very limited on the number of loan programs they offer. For the most part, they offer regular Conventional, FHA, and VA only although some do get into Jumbo. Others only provide Conventional or Jumbo and at those Credit Unions, neither FHA or VA is an option. VERY few Credit Unions offer Renovation mortgages.
"Credit Unions also tend to have higher Credit Score requirements and lower Debt-to-Income Ratio limitations. Their underwriting guidelines are going to be much more strict. Most will not go under a 640 credit score on FHA or VA.
"In Georgia, the only advantage really isn’t fair, but that is the way GA law was written. A loan from a Credit Union is exempt from the GA Intangible Tax."
Joe Petrowsky, Connecticut, licensed in CT, MA, RI, VT, NH, VT, NY and FL RightTrac.
"The part that doesn’t make any sense, why is it that most of the credit unions in my area refer some of their clients to me? For one reason or another, they refer to me.
"There is such a small percentage of clients that are “Perfect” that the Credit Union can do at a better rate."
David Shamansky, from Colorado, works with USMortgageS.
"There is NO cut and dry answer for this type of question ever.
"Sometimes [the Buyers] might [be better off] if the CU has a special or deal going on but advise Clients to BE CAREFUL as that is definitely not always the case.
"As a matter of fact, I know of many CU that actually don’t even do the loan. It is all farmed out and branded as them. Or I have seen plenty that also just refer people out to actual brokers or lenders who came and requested business from them. So you never know what you are going to get.
"It boils down to strength of borrower, down payment and loan size. Yes, many lenders had to implement a low-end cap on smallest they will go to in order to remain compliant with Dodd-Frank and the barbaric fee regimen they hold our industry to.
"Hope that helps but bottom line is NO - no one is best for every scenario, not even us!"
"Credit Unions seem to skim the cream off the top, meaning their borrowers tend to be borrowers with high credit scores and money to put down on a house.
"The Credit Unions around here have a very limited number of loans they are able to do.
"Many of them are not even set up to do FHA loans. Their rates are not better than other lenders, but members of Credit Unions tend to feel more comfortable doing business with them, because they seem to think they will get more attention there."
Credit Unions like Loans with the least risk possible.
Credit Unions may have limited Loan Program offerings.
Credit Unions may refer loan to Mortgage Broker or Lender.
Looks like another case of "caveat emptor" ... BUYER BEWARE when choosing.
Thanks for the participation - My ActiveRain Mortgage Advisors!!
Previous "Multiple Answers" posts include: FHA or Conventional.
Have a successful day -
Atlanta GA Mortgages?
Contact one of these LOCAL EXPERTS!
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|Julie Beaty||Rodney Mason|
|Fidelity Bank, Atlanta||Prospect Mortgage, Atlanta|
|Senior Mortgage Banker||Senior Loan Officer|
|NMLS #545251||NMLS #151088|
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