When I bought my condo five and a half years ago, I had no idea what I was doing. I nearly got strong-ARM’d by an aggressive mortgage lender who repeatedly assured me that no matter how high rates rose, even after the adjustment, I’d never be in over my head.

I have a feeling he said that to a lot of people. Fortunately, I had access to friends and family who had been through the process before and who told me that 30-year fixed mortgages were a little less unnerving. While I believe that ARMs have their place (and not just on either side of your torso), I knew I would have difficulty with the uncertainty. I decided that the 30-year fixed was the right product for me, and I’ve never regretted that decision. I found another lender who listened to me, heard my concerns and directed me to the mortgage product that worked best for me, not for the lender. Guess who got my business?

Things have changed since the fall of 2004. The economy has changed–the mortgage market is spoken of more with fear than wonder. One thing, however, has not changed, and that’s the importance of a lender who listens.

I am nearly at the conclusion of refinancing my wee little condo. Not surprisingly, since I work for Group Health Credit Union, I did my refi through them (us?). Every step of the way, my needs were heard and my questions were answered. And I know they do the same for everyone who applies for a loan here–it’s the benefit of being a member rather than a customer.

We bang the not-for-profit drum a lot, but the difference between getting my initial mortgage from a for-profit agency and conducting my refi at a not-for-profit credit union was really striking. At the credit union, the motive is to get the best possible products for members, since members own the credit union. At a for-profit lender, the motive is to reap the highest possible profits which are turned into dividends that keep shareholders happy and investing.

Regardless of the lender you choose when applying for a mortgage or a refi, be sure to put them through their paces. Ask questions. Lots of questions. If you are brushed off, if answers seem lacking, if your question doesn’t get the attention you deserve, keep looking. Even if rates go up, you may still save money by having the right mortgage product.

If you’ll excuse me, I have to go do some more happy dancing at my desk.

Filed under: The Credit Union difference by Shannon