Why Choose A Credit Union For Home Loans 5. March 2015 Administrator Home Loans (0) There are various benefits associated with a credit union membership and one of them is the ease to get home loans. However to understand the process you should be familiar with the working of a credit union. What is credit union?Credit unions are financial institutions that offer checking and saving accounts, receive deposits, and offer credit for a wide range of needs such as home loans, auto loans, etc. However, unlike banks, they are member owned non-profit organizations that aim at building up the local community. Due to their lower operating costs credit unions offer low mortgage rates.Benefits of having home loan from a credit unionPurchasing a home is a daunting task due to the expenses involved. Most people apply for a home loan when buying a house as it makes the process easier. However, it is very difficult and time consuming to get a loan approved banks, due to the formalities and paper work involved. Thus, a credit union is the best alternative to banks for auto loans and home loans. It approves the loan quicker and offers flexibility in repayment as well.Lower rates of interest: Credit unions offer favorable interest rates as compared to banks that help in making savings in the long run. The unions are non-profit organizations and are exempt from paying taxes like traditional lenders. Therefore, credit unions offer lower interest rate on home loan mortgages.Flexibility: Unlike banks, the credit unions are more flexible in the policy and are cooperative with their members. As the credit union is members owned, all the members have the right to vote on important issues that affect the rates of interests. Lower income requirements: The credit unions may also approve borrowers with lower income. Thus people who might not qualify for a loan in a bank stand a better chance of getting a loan through a union. Other benefits: Some other benefits of taking home loans from credit union include personalized service in comparison to banks, higher payouts on certificates of deposits, faster closing options and even the possibility to miss a payment. A credit union surely has an edge over banks and offers many benefits to its members. However, you should consider discussing your case with a consultant to get the full details about your individual case. We, at Greater Central Texas Federal Credit Union provide you home loans at affordable interest rates. For more information, you can visit us at 3305 E Elms Road, Killeen, TX 76542 or call (254) 690 – 2274.