Do institutions lend out of state?

[Phitor]

Was just wondering if, for example, a California based Credit Union would generally lend for a mortage on a property in, say, New England. I know every case is different, and I should definitely ask. But I was thinking that there might be logistical issues with lending, appraisal, etc, that lenders would shun if the target property was accross country.

Any general ideas? Thanks

[Anonymous]

Hi --

I live in Nebraska and the auto loan on our car is from a credit union based solely in Texas. So yes, I believe some do. You should call and ask. The worst they can say is no.

[ShanetheMortgageMan]

A credit union needs to be chartered in a state to be able to lend there, so it's entirely possible but since most credit unions serve a local population the odds won't be great.  Still, it's worth a call.  A bank or credit union that has "Federal", such as First Federal Savings and Loan Association, or "National", such as First National Bank, in the name likely will lend in more than one state and even nationally.  If it's "Southern California Edison Credit Union" then my guess is they may not lend outiside of California.

[Phitor]

Thanks for the advice. I checked with the credit union, and they do not lend for property out of state.

Ugh, I wish I would have checked years ago. I've been with them since 2001, but haven't lived in CA since 2004, so I have literally wasted 7 years with them. Should I just yank all my money, checking, savings away from them, and into a more local institution? The way I see it, there is now absolutely no practical benefit for remaining with them. But I don't want to drop them if there is some benefit I am not considering.

Thanks...

[ShanetheMortgageMan]

You'd have to compare the benefits they offer vs. a local credit union or bank offers - to my knowledge there is no secret benefit a CU in CA would have over a CU in another state.