# Credit Union Loan before Mortgage Drawdown



## wonko

I hope someone can give me a definitive answer here.

Quickly my situation is.  I borrowed money from a family member to pay off a car loan in order to apply for a mortgage.

The mortgage process became (for various reasons I won't get into) extremely protracted.  It has subsequently left my family member very strapped for much longer than I anticipated.

Our loan pack is due to the solicitor tomorrow, so now the end is in sight. But of course the actual draw down of funds is still some way off.  

My question is I am anxious to get a Credit Union loan immediately to repay what I borrowed.  If I do this after the loan pack but before the draw-down will it have an effect on the process.

I would love an answer before i put any more delays on the process inadvertantly.

Thanks in advance.


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## lmd

You can borrow no problem.  We just borrowed 30,000 for our deposit and the bank know nothing about it.  the only thing you have to do is make sure there is no direct debit going out of your bank account to the credit union as otherwise the bank you are borrowing from will ask to see your credit union statement.  Apart from that the credit union doesn't disclose anything so get borrowing.  the credit union will try to get you to set up a direct debit paying the loan back but if you explain your reasons they should let you pay in cash each month.  good luck.


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## wonko

Cheers for that.  So even after they have checked my credit history etc and issued the loan offer they will check my transactions again before the draw-down.  Thats basically the crux of the question isn't it?


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## lmd

They are not guaranteed to re-check however as far as i know they kind of 'reserve the right' to check again. basically i think you are okay but i would avoid the direct debit situation if at all possible.


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## Newbie!

Just be sure to check the credit union in question is not a member of the ICB.

This thread was up a little while back and I looked into it (as I was in a similar situation!)...

http://www.askaboutmoney.com/showthread.php?t=4783&page=2&highlight=credit+union+ICB


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## lmd

No, the credit unions do not disclose info.  I know this for a fact having discussed it with them 4 weeks ago when we borrowed the 30,000


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## irishpancake

lmd said:
			
		

> No, the credit unions do not disclose info.  I know this for a fact having discussed it with them 4 weeks ago when we borrowed the 30,000




Not True  , as can be seen from the list shown [broken link removed], from the Irish Credit Bureau site. 

As can be seen, there are a number of Credit Unions affiliated to the ICB.

Just be careful, even if your Credit Union is an Occupational one, with deductions from wages facility, as these will show up on Pay Slips


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## Sarah W

wonko said:
			
		

> I hope someone can give me a definitive answer here.
> 
> Quickly my situation is.  I borrowed money from a family member to pay off a car loan in order to apply for a mortgage.
> 
> The mortgage process became (for various reasons I won't get into) extremely protracted.  It has subsequently left my family member very strapped for much longer than I anticipated.
> 
> Our loan pack is due to the solicitor tomorrow, so now the end is in sight. But of course the actual draw down of funds is still some way off.
> 
> My question is I am anxious to get a Credit Union loan immediately to repay what I borrowed.  If I do this after the loan pack but before the draw-down will it have an effect on the process.
> 
> I would love an answer before i put any more delays on the process inadvertantly.
> 
> Thanks in advance.



Once the loan offer has issued all the under-writing/approval/credit checks have been completed and whilst the lender could possibly do a spot check after the loan has been offered and it's technically possible that the CU loan could show up on it the chances are very, very unlikely. The exception is that if closing is more than 6 months from loan offer (not unusual in the case of a new house) the lender may ask for updated payslips, bank statements and a credit check at that stage. 

Sarah

www.rea.ie


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## lmd

irishpancake said:
			
		

> Not True  , as can be seen from the list shown [broken link removed], from the Irish Credit Bureau site.
> 
> As can be seen, there are a number of Credit Unions affiliated to the ICB.
> 
> Just be careful, even if your Credit Union is an Occupational one, with deductions from wages facility, as these will show up on Pay Slips



My credit union is not on that link you sent and once again I will say we discussed it with our credit union who said they don't disclose the info to the bank.


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## irishpancake

lmd said:
			
		

> My credit union is not on that link you sent and once again I will say we discussed it with our credit union who said they don't disclose the info to the bank.




you actually said 



> No, the _*credit unions do not disclose info*_. I know this for a fact having discussed it with them 4 weeks ago when we borrowed the 30,000



which is slightly, but crucially,  different, IMHO

you have no idea if the OP is a member of *your* Credit Union, so your advice could have been seriously misleading for him/her.


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## kcat

hi guys,

I have a similar question which I really need advice for..

I am currently bidding on a property which looks like i will well get sal agreed on soon.

I applied for a €15k loan from my credit union (which is not a member of ICB). I also had about €7000 in shares in the credit union.

The CU approved my loan and when I went to sign for contract they had already written me a cheque. Anyway, I have had the cheque for over a month now and my broker adviced me not to lodge any money into the bank as it would raise suspicions. She advised me to re-lodge itto the CU.

In the meantime Ihad also gotten a small gift from a family member so I decided to only borrow 10k from CU

So back I went to the CU today. I wanted to lodge 10k to my shares (totally my shares to 17k) and take 5k off the loan amount (leaving my outstanding loan at 8k as I paid 2k off early this month). Anyway, credit union rules state that you can then only withdraw the difference between the 2 ie. 9k even though the loan is for greater.

I realise I went about this loan completely backwards but if anyone has advice on how to rectify it, I'd be very grateful!


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## Money12345

Hi Kcat - Can you clarify what exactly your current loan is and your current share amount is?  I am finding it a little difficult to understand what you have done and what you want to do!


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## kcat

hi money12345

I have a loan of 15k and shares of 7k in the credit union. The CU gave me the 15k in a cheque (which I didnt really want). 

My broker advised me not to lodge the money to bank and instead lodge into CU shares. I also decided that I only needed a 10k loan and would give back 5k effectively. This would make my shares = 17k and the loan =8k (I have already paid about 2k off it). 

The cu then told me that they could only give the difference between the loan and the shares which would be 9k. (BUT I wouldn't be able to withdraw the 7k which I originally had in my shares)..
does that make sense????

Appreciate any advice offered!


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## deem

Not really

My understanding would lead to suggest as follows

Lodge all loan cheque to credit union shares.  This should not be a problem

When making your next weekly payment, just repay 5K extra

Retaining the 7000 savings would appear to be very high with loan balance greatly reduced, 

you should be able to refinance loan with them, to solve this problem​


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## Money12345

Hi Kcat

My advice to you is to lodge a certain amount of what you want into your loan.  CU can faciltate you with another cheque for the remaning amount.  I do not understand why you have been told not to lodge anywhere else.  The reason why you are doing this in the first place is because you have been gifted money so you are entitled to declare these monies to the lender as a gift.  The only point to watch out for is if you confirm this they will need a letter from the person gifting the money to confirm that they have no interest in the property you are purchasing. (normally dealt with by solicitor) This differs from lender to lender!  Hope you understand my jargon!


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## kaplan

*credit union boom time lending*

some evidence of credit union lending practices during the boom


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## Bronte

kaplan said:


> some evidence of credit union lending practices during the boom


 
also evidence of the mindset of borrowers and brokers   No wonder people are in such a mess.


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