For the last four months, I have been looking for commercial lenders to perform a cash-out refinance on my single family investment property. Throughout the process I have consulted with several lenders at smaller banking institutions. To this point, I have had less than stellar luck, getting denied for this or that. Finally, an investor buddy of mine gave me contact info to a prominent credit union in Philadelphia. After speaking to the business relations manager I knew I was dealing with a company that wanted to do business with me. He immediately sent me an application and the ball was rolling from there. I was approved for the cash out refinance at 70% loan-to-value of my property and should closing in the coming weeks.
Based on my current experience, I feel it is important for everyone to join a credit union. Below I detail three reasons why it is a great decision to do so.
Members of Credit Unions are vested: When you join a credit union, you are classified a either an owner or member depending on the structure of the credit union you choose. This is important because this gives you the ability to vote on decisions when the time comes. You feel different than being a traditional bank patron as they make you feel like a customer and I don’t believe handling your money should feel this way.
More Services: Credit unions often offer more services than a normal bank. The credit union in reference even has an in house real estate company in addition to other concierge services.
Better Rates: Credit unions usually have less restrictions than banks. They usually hold their own loans and offer rates that are slightly higher on the savings side and lower on the lending side of transactions.
It would be a wise financial decision for everyone to add a credit union to their financial institutions. Your current bank may be treating you right at the moment, however it never hurts to see what a credit union may be able to do for you. It may save or make you some additional cash.