Understand Your Loan Options
There are many different types of loans. So many, in fact, you may actually be overwhelmed by your loan options. First, it is important to understand your loan choices: what credit unions look for and require when lending and then understand what options credit unions may have to meet your financial needs.
Lending considerations and requirements
To understand your financial situation, financial institutions use a debt-to-income ratio. It is important to make sure your debts do not exceed your income. Another item credit unions take into consideration when lending is your credit score. Your credit score may determine things such as your interest rate and the amount we lend based on the value of the collateral.
However, financial institutions will each look at this a little differently. In fact, Mid Oregon Credit Union has a different lending philosophy than many. Tara Turner, Lending Manager at Mid Oregon, explains:
“In reviewing loans, we try to get your whole financial picture, past and present, in order to make an informed decision. In other words, we go beyond just checking boxes.”
Although loan requirements vary by credit union or bank, typical requirements may include having a Social Security Number, membership at the credit union or proof of employment. Often, you may be asked for collateral, references, and income verification.
If you’re concerned about your credit management or loan requirements, ask someone at Mid Oregon for guidance or a referral.
If you are not yet a member with Mid Oregon, don’t worry! Qualifying is easy for Central Oregon residents, and others may qualify through a family or other relationship. Check our membership qualifications to learn more.
Types of Loans
There are many loan types and options and one of these options is the traditional loan. Some traditional loans are home mortgages, vehicles and RV loans and personal loans. Share secured loans, where the credit union makes a loan to you based on what you have in your savings account, and credit cards are also traditional loans.
Another type of loan is one that helps to build your credit. Some credit unions. like Mid Oregon, have credit building loan programs. A shared secure loan can also help to build credit.
Your financial institution may offer loans for specific events or expenses. For example, if you need additional funds to cover expenses during the holidays your credit union may have an option for you. A shorter term home loan will help you pay off your mortgage early.
Finding Out More
Inquire with your credit union to learn more about these loan programs and any others they may have available for you.