Home Mortgages Made Easier from Benchmark Federal Credit Union

By

By Rebecca K. Worthington

With mortgage rates at their highest in nearly five years, many homeowners and home buyers are pausing right now to reassess their financial situations. Analysts are reminding us, however, that mortgage rates remain much lower overall than they were before the Great Recession, so if you’re looking for a mortgage, it makes sense to lock in a rate that you like.

That’s certainly sound advice, but in the current housing market, it’s possible you may find an ideal mortgage rate and not get approved for it. The “big name,” larger banks remain under pressure to adhere to tighter lending standards than they did prior to the recession, which can pose a major hurdle. In this climate, people are finding that working with a credit union can be an excellent alternative that provides faster, personalized service.

Credit unions rank high in satisfaction because of their deep community connections and long-term relationships. It’s not unusual for them to serve multiple generations of the same family as members purchase their first cars, enter college, buy homes and enter retirement. This means your loan officer may already be familiar with your financial history, which can accelerate the loan application process considerably.

In addition, even if you’re new to your federal credit union, you’ll find there’s often less bureaucracy – and red tape – so you can find out more quickly if you are able to purchase the home you’ve set your heart on. This is because credit unions typically serve a much more focused membership, like a specific employee group, members of a trade, industry or profession; or those living, working, worshiping, or attending school in a specific community.

[uam_ad id=”58459″]

Advertisement

The Consumer Advantage

The Consumer Federation of America (CFA) recommends that consumers check into credit unions for good loans and savings rates. They note that compared to credit unions, banks pay lower rates on savings accounts and certificates, but charge higher rates for consumer loans.

“The reason credit unions offer better rates is that they are non-profit, member-owned, cooperative institutions that work for the benefit of their members,” said CFA Executive Director Steve Brobeck. “Credit unions don’t have to pay dividends to stockholders or directors, and operating expenses are considerably lower than the operating expenses of banks.”

Serving People, Not Profit

The not-for-profit credit union approach to providing financial services is based on a philosophy of “People Helping People.”

The concept dates back to Germany in the mid-1800s, when townspeople pooled their savings to provide loans to farmers hurt by a poor growing season. This cooperative approach helped farmers avoid paying high rates being charged by less scrupulous lenders. Today, credit unions continue to offer low-cost financial services that rival those of banks. Governed by a board of owners – not stockholders – credit union profits go back to the members through higher savings dividends and lower loan rates.

________

Rebecca Worthington is Vice President of Marketing with Benchmark Federal Credit Union, which has new branches in Phoenixville and downtown West Chester. Celebrating more than 75 years of service, Benchmark FCU is the only federal credit union to exclusively serve Chester County. Visit Benchmark’s Mortgage Center to view rates, apply for a mortgage, or calculate a payment. 610-429-1600; BenchmarkFCU.org.

[uam_ad id=”71799″]

Connect With Your Community

Subscribe to stay informed!

"*" indicates required fields

This field is for validation purposes and should be left unchanged.
Advertisement
Creative Capital logo