Should You Get a Mortgage From a Bank or Credit Union Where You Already Do Business?
Applying for a mortgage is complex and stressful. Many homebuyers think that they should seek a mortgage from a bank or credit union where they already have an account. They assume that since they have been a customer for years, the mortgage application process will be quick and easy, they will qualify for a competitive rate and they will receive excellent customer service. None of that is necessarily true.
You May Face Difficulties in the Application Process The fact that you already have an account with a financial institution doesn’t necessarily mean that applying for a mortgage will be a smooth process. You will still have to complete an application. The bank or credit union may not be able to pull your information from their records and fill out the majority of the loan application automatically.
Financial institutions differ in terms of their hours of operation. Your bank may be open at times that are convenient for you when you need to make deposits or withdrawals, but their loan officers may have hours that are much more restricted. That may make things tough if you need to meet with a representative in person and have to take time off from work.
The amount of time required to be approved for a mortgage may differ considerably from one institution to another. Your bank or credit union may process applications at a faster or slower rate than its competitors.
You Might Not Get the Best Rate With Your Current Financial Institution It’s important to compare interest rates and other terms from several lenders before you decide which one to use. Many people assume that they will qualify for a low mortgage interest rate because they already have an account and a relationship with a company, but that is often not the case. You may find a lower rate from a different bank, credit union, or online lender and may be able to save tens of thousands of dollars over the life of your mortgage simply by doing some comparison shopping.
Check Rates and Reviews Your mortgage is probably the biggest debt you will ever take on, so choose a lender carefully. A financial institution where you have had a checking or savings account for years may not be your best option for a mortgage. Shop around to find the best interest rate available.
You should also check online reviews from past customers. The home-buying process is stressful, even under the best of circumstances. Dealing with poor customer service from a mortgage lender will only add to the mental burden. Look for a company that has gotten generally positive reviews for its customer service.
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