Ready to buy your first home? The first step is financing. You’ve probably noticed that there are a lot of choices out there for mortgages in Reno, Nevada. From huge lending companies, to small, locally owned credit unions, which one is right for you? The answer depends a lot on how you like to do business. Let’s take a look at the pros and cons of getting your mortgage through a local credit union versus through a nationwide bank.
If you’ve never been a member of one, let’s take a quick look at credit unions. Credit unions are non-profit, member owned lending institutions, with a goal of providing affordable financial services. In terms of mortgages, credit unions are great, because they have local offices. Rather than having to spend time online or on the phone if you need something, with credit unions, you can go into the office and pay your mortgage, ask about refinancing, or set up a repayment plan if you can’t make your mortgage payment. These things are much easier to do in person, and are a lot less stressful when you are talking with a friendly person, face-to-face.
Unfortunately, despite these perks, credit unions can sell the mortgage loans they make. Which means that despite having gotten the mortgage through your credit union, you may end up having to go online anyway to do all those things metioned above. But it depends on the credit union – overall, credit unions only sell about half the mortgage loans they make. And two-thirds to three-quarters of credit unions that do sell retain the servicing even when they sell. Which means that even if your credit union sells your mortgage, you may still be able to do the servicing through them.
There are many credit unions that offer Mortgages in Reno, Nevada and the Great Basin area, so if you think that a credit union might be right for you, spend some time talking with a few. Ask if your mortgage will be sold at any time, and if so, whether or not they retain the servicing. Ideally, the credit union you choose won’t sell your mortgage at all, so look for ones that can offer a guarantee that they won’t sell. If you can’t find one you like that can offer this guarantee though, at least make sure you find one that services the mortgage loans they make, even if they do sell.
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