Buying a house in the United States isn’t easy as prices creep up. Fortunately, not-for-profit institutions like UW credit union pass savings along to customers, making home purchases more affordable.
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What Is UW Credit Union?
UW Credit Union was founded in the year 1931 at the University of Wisconsin. The founders believed that it would act in the best interests of others.
The financial strength, leading customer satisfaction scores, and continued growth of the UW Credit Union have shown that the founding members of this institution were right.
Since its founding, their balance sheet has grown to hold over $2.7 billion in assets. And don’t think that being local means they’re primitive. UWCU offers mobile banking, financial calculators, web pay, and mobile deposits to each of its 250,000 members.
Banks vs. Credit Unions
Banks are in the business of making profits, while customer service is put on the back burner (just look at Wells Fargo in recent years). On the other hand, credit unions like UW Credit Union are not-for-profit financial institutions that exist to benefit customers.
The members are required to make a deposit to the union. Those deposits are used to offer loans to members needing credit. This is the reason why credit unions generally offer lower interest rates and fees. Not only that, but these financial institutions excel at customer service.
Mortgage Options
If you are looking to borrow money for buying a new home, you’ll find several mortgage options at UW Credit Union that may fit your needs. Some of the loan options that you can find at the credit union include:
Fixed-Rate Mortgage
A fixed-rate mortgage is one of the most popular lending options. The interest rate and monthly payment remain the same for the whole term of the loan. Even if the market fluctuates, the rates of your mortgage will not change.
Thus, a fixed-rate mortgage is a good option for borrowers who can make a certain payment every month. You should consider a fixed-rate mortgage if you are concerned about market fluctuations.
After all, it helps ensure that the payments don’t change throughout the term of the loan. You can choose between 15-year and 30-year fixed-rate mortgage.
Adjustable-Rate Mortgage
The initial monthly payments of the adjustable-rate mortgage are generally low. The interest rate on the loan is fixed for a specific number of years. Adjustments may occur afterward.
Three-year, five-year, and seven-year terms are popular. A 15-year term option is also available. You should consider adjustable-rate mortgage if you plan on selling your home after a few years or would refinance if the rate goes up.
Jumbo Mortgage
Jumbo mortgages or jumbo loans are also offered. You should consider availing this option if you want to borrow more than $484,000. These loans are available with a fixed rate and adjustable rate.
Construction
If you plan to build your dream home in Wisconsin, then you should consider getting a construction loan. The union also offers a construction rehabilitation loan that you can use if you want to make some improvements to your existing home.
Federal Housing Authority (FHA) Loan
FHA loans are insured by the Federal Housing Administration. These are competitive loan programs and home buyers may qualify for them even with less than perfect credit.
The down payment required on the FHA loan is as low as 3.5 percent. FHA mortgages can be adjustable-rate or fixed-rate loans. If you want a lower down payment or have less-than-perfect credit, you should consider getting an FHA loan from UW Credit Union.
You can also apply for an FHA loan if you don’t qualify for a conventional home loan.
Veteran Affairs (VA) Loan
A VA loan is a federally guaranteed loan for veterans. With this loan, you don’t have to worry about down payment and private mortgage insurance. This is a great mortgage option for eligible veterans who can’t qualify for conventional loans.
You should consider getting a VA loan if you are a veteran, military spouse or active duty Service member.
Features Unique to UW Credit Union
Not only do credit unions offer low interest rates and low fees, but they also provide some unique features to their members. Some features unique to UW Credit Union include:
Lowest Closing Cost Commitment
With the lowest closing cost commitment, borrowers will get a great deal on their closing costs from the union. If the borrower can find another lender who is offering a more affordable closing cost, then UW Credit Union will pay the borrower $500 or match the lender’s closing costs.
First-Time Home Buyers
If you are a first-time home buyer, then you will get up to $1,000 off of closing costs as part of a special offer. In addition, the experienced loan officers from the Union will provide you helpful guidance.
The Loan Process
UW Credit Union can make buying your dream home stress-free and easy. The process of applying for a loan through the Union is easy:
- Select a Loan — After you have found your home and the offer has been accepted, select a loan option that works for you. Consider your payment needs and budget when choosing a loan option to finance your home.
- Apply for the Mortgage — Submit all the paperwork to the lender. You’ll be required to provide your ID, bank statements, income documents, etc.
- Credit Approval — UWCU’s in-house underwriters will check your credit and verify your income.
- Processing Loan — The underwriters and processors will check whether you meet underwriting standards.
- Final Loan Approval — The in-house team of underwriters and processors will do one final check to ensure that your income and credit hasn’t changed since you submitted the loan application.
- Closing — If all goes well, UW Credit Union will write a check and you will get the money that you need for financing your home.
Who Is Eligible to Join?
UW Credit Union offers a lower interest rate, lower fees, and several other benefits that make them a better option for a mortgage than banks. If you want to get a home loan from a credit union, you must become a member of the union.
In the past, becoming a member of a credit union wasn’t easy as membership eligibility requirements were quite stringent. However, this has changed and many credit unions now have flexible membership requirements.
If you wish to become a member, you should look into its membership criteria. If you are a Wisconsin resident who is currently enrolled in or has attended an accredited institution of higher education nationwide, then you are eligible to join.
Once you have joined the union, you can apply for a mortgage and reap several other benefits of being a part of UW Credit Union.
UW Credit Union Locations
UWCU has multiple branch locations in Madison, Whitewater, Milwaukee, Green Bay, Oshkosh, Stevens Point, and La Crosse. You can also deposit checks using their mobile deposit feature on their app. The University of Wisconsin Credit Union also has a robus online banking platform so you don’t need to go into the branch if you don’t want to.
Customer Reviews
Any good review should require not only our opinion, but also some feedback from real customers. So, we turned to the internet to see what actual customer were saying.
Reddit user teethteetheat says,“I have had an account with them since I was a baby and they have been nothing short of great. No ridiculous overdraft fees, great support, no hidden fees. They are a great org who really works for you.”
User Evangelinens says, “I adore UWCU. I’ve had an account since I was 18 (nearly 37 now!) and I have no complaints.”
On the other hand, maxvasquez points out that there are no ATM fee rebates. Other credit unions like Pentagon Federal waive these fees on a pre-set number of transactions, so this is worth remembering if you plan to withdraw cash frequently.
However, if you plan to do this, just drop by a branch to withdraw free of charge.
Should You Get a Mortgage from UW Credit Union?
If you are a Wisconsin resident looking for any type of loan, or even just wanting a place to store your extra money, you should look no further than UW Credit Union. Then, when you are looking to buy a home, it’ll be easy for you to get a loan. We want to hear about why you love being a member!
