GCTFCU Blog | All posts tagged 'Home Loans Killeen '

Home Loan Tips

28. October 2017 Administrator Home Loans (0)

Buying a home is indeed a dream come true and the experience is completely surreal. Today, one can take loan and pave their way to home-ownership. However, buying an ideal home involves huge finances that can put a burden on your pocket if not planned well. Here we have listed certain tips which must be considered before taking a loan.

Know Your Repaying Capacity – Do not borrow an amount which you cannot repay. Check if you have enough monetary and income sources to make sure you make no defaults on repayment of interest and loan amount.

Take Loan From A Credit Union – It is a wise decision to opt for loans from credit unions. To apply for loan, a credit union membership is quintessential. From liberal policies to low interest rates, they offer a wide range of home loan options to their members.

Start Saving For The Down Payment – No matter what type or amount of loan you opt for, saving early for the down payment is imperative. Saving and planning for your down payment helps you to take advantage of better options and to meet your financial commitments on time.

Avoid Long Term Loans – Longer the period of loan, more the interest rates. To avoid shelling out dollars, it is highly advisable to take loans for a shorter tenure which are affordable and easy to repay.

Ensure Complete Paperwork – To get qualified for home loan promptly, make sure that you possess all the necessary financial documents that your lender asks for.

Plan Your Budget – If you are planning to take a home loan in near future, plan your budget accordingly. Cut down on other expenses to make sure that you save enough to fulfil your financial commitments that shall arise when you opt for a loan.

Choose An Ideal Loan Option – Thoroughly research for all the available loans options and select that one whose terms and conditions suit you the best. Carefully choose the loan type after considering your financial status and requirements. Focus on all the aspects of the loan rather than just taking into account the low interest rates.

Improve Your Credit Score – You must have a good credit score to secure the best deal. The lender would certainly consider your credit records to ensure himself whether you would be able to repay your loan or not.

Use A Mortgage Calculator- It requires you to enter some basic details like price of home, your down payment savings, payments per year etc. The easy to use calculator allows you to calculate mortgage payments you would need to pay on the basis of the information you fill in.

We, at Greater Central Texas Federal Credit Union offer home loans to our members. For more information call us at (254) 690 – 2274.

Home Loan Application Checklist

21. September 2017 Administrator Home Loans (0)

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Common Home Loan Mistakes

19. July 2017 Administrator Home Loans (0)

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Steps To Applying For A Home Loan

17. March 2017 Administrator Home Loans (0)

A credit union is a non-profit cooperative that provides home loans at low interest rates to its members. The organization aims at passing on the profits to the members and therefore adds a lot to their savings. It is important to be clear about the home loan requirements so that you can easily purchase the home of your dreams.

Below are some steps that you need to follow while applying for a home loan:

Get pre-approval: In simple terms, pre-approval is a written application that states how much amount the lender will let you borrow. This document is necessary so that you know exactly how much you can borrow and how much money you need to put from your side. This will help you divide your budget according to the monthly expenses. Various factors such as employment history, credit score, down payment etc. are taken into account while pre-approving a home loan.
Make the offer: After zeroing down a particular property, you need to prepare an offer in consultation with your real estate agent. Offer contains details such as purchase price, closing date and the time period for which the offer holds good for you. This is given to the seller who can accept or reject it. If your offer is accepted, you need to get home inspection done from a qualified professional.
Complete the loan application: After coming to a conclusion regarding the price, you need to complete the loan application formalities. The lender will determine the terms and conditions of your loan, ask you to complete the loan documents and may also demand additional documents. These can include: pay stubs for the past few months and tax return details etc.
Get the interest rate locked: Locking the interest rate with your lender ensures that it does not go up while your loan is still getting processed. This is imperative because home loan interest rates can fluctuate on a daily basis and you would want the lowest interest rates for big financial savings.
Go through loan processing: In this step, your home will be evaluated to judge its market value. Apart from this, the lender will review your loan application, cross-check the documents, verify the financial information and also check the title details to ensure that all the legalities are in place.
Closing: During the last stage, your home loan documents will be sent to a title company so that you and the seller can duly sign them. A photo identity proof along with the down payment amount is required for closing. Apart from this, many other documents such as loan note and deed etc. need to be reviewed and signed.

We, at Greater Central Texas Federal Credit Union offer affordable financing services in Killeen, TX. To know more about our credit union, call us at (254) 690 – 2274.

Applying For A Home Loan? Questions Your Lender May Ask

17. November 2016 Administrator Home Loans (0)

Getting a home loan is expected to be an extensive process as the lender may ask some important questions from the borrower. This may be done to clear any doubts regarding your financial stability. You need to be prepared with all the paperwork and documents at the origination of the loan-approval process. Following is a list of questions a lender may ask before approving your home loan:

Q: How much do you earn?
The lender may ask for the recent pay stubs in order to secure a fairer idea of your monthly income. The debt-to-income ratio has to be conducive for you to secure the desired amount of loan at a reasonable rate of interest. Having a stable job with a steady income reduces a number of hassles for you. In case you own a business or have recently changed your job you may need to produce your tax returns. Asking for your income tax returns can imply two important causes. One, the lender wishes to look at your annual revenue. In case you have provided with a record of past few years, the lender will get a fair idea if your revenue has increased or remained constant over the years. This is good because it increases your credit worthiness.

Q: What is your source of income?
The lender would want to be sure about your job stability. Providing details about your employer can help the lender get a better idea about your income consistency. If you are self-employed, it is necessary to make sure your business is profitable. The lender may ask for at least two years of income records. In case you are planning to pay the loan from your savings or you will be using a grant/gift from your relatives, you may be required to produce the gift letters as proof.

Q: Do you have any current debts?
This question is generally asked to get an idea about your financial liabilities and ensure that you will be able to repay the loan. Sometimes, the lender may ask you to produce documents which state that you have paid all of the previous debts. In case you have an active debt, the lender may want to make sure that your income allows you to take another loan.

Q: What is your marital status?
If you plan to pay your debt through the alimony, the lender will need assurance that you will receive the amount. Women receiving money from their ex-husbands may need to produce the papers that state their legal separation.

Q: What is your credit history?
The lending institution may want to know your credit history in order to make sure you pay your bills on time. This also gives the lender a fair idea of your creditworthiness and the way you manage your expenses. Having a high credit score increases your chances of securing loan at a lower rate of interest.

Q: How much savings do you have?
Many people plan to make the loan payments through their savings. Having sufficient savings in the bank is appealing for the lender because it shows your liquidity and ability to pay the mortgages smoothly. A savings account acts as an asset for a borrower and increases the chances of getting a loan approval.

Q: What is the limit of your down payment?
The down payment is a major factor determining the amount of the monthly installments. This in turn decides the duration of loan payments and the money you save. If you pay a higher down payment, lesser will be your loan tenure and monthly installments. An added benefit is that you may secure the loan at a lower rate.

If you are looking for affordable home or auto loan in Killeen, TX, consider Greater Central Texas Federal Credit Union. We offer a wide range of loan plans at low interest rates and easy repayment options. For more information, you can call us at (254) 690 – 2274.

Home Loan: Pitfalls To Avoid

12. August 2016 Administrator Home Loans (0)

Getting a home loan approval lends a sense of relief to the buyers. However, the excitement of buying a new home can sometimes lead to unwise financial choices that might not be beneficial for you in the longer run. Being realistic in your approach and knowing how much you can afford can help in making a well-informed decision. Stay within your budget because you will need to repay the loan along with the specified rate of interest. Do consider your total repayments before applying for a home loan.

Listed below are some common home loan pitfalls you must avoid:

Getting lured by offers from financial institutions: It is always advisable to take into account the overall cost of home loan before getting lured by the offers from the lenders. These freebies could be in the form of a discount in documentation charges or waiver in the first installment. Although this may save a few dollars in the beginning, it will make your home loan costlier in the longer run. Hence, get a home loan from a credit union that offers a low rate of interest.

Not considering all the options: It is not good to make any decision regarding the home loan in a hurry. Get in touch with multiple credit unions in Killeen, TX to get detailed information about the available home loan plans. Do not borrow more than what you can afford to pay back and consider all the documentation fees as well as other processing charges to know the exact cost of the loan.

Switching between loan terms: You must not switch the home loan once you have borrowed it from a credit union. At the beginning of the loan term, you may have to deal with a lot of expenses such as legal fees, establishment fees and insurance. Switching the loan plan means paying these charges all over again which can eventually put a huge burden on your finances.

Miscalculating the overall interest cost: Make sure the credit union offers a home loan with a consistent rate of interest through the entire period of loan. You should calculate the overall interest payments to be made during the loan tenure to minimize your financial encumbrances.

Visit Greater Central Texas Federal Credit Union if you are looking for a home loan in Killeen, TX. We offer a wide range of loan plans with low interest rates and easy repayment options. For more information, call at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX 76542.

Do's And Don’ts For Home Loan In Killeen, TX

14. May 2016 Administrator Home Loans (0)

Getting a loan for your dream home can be tricky because you need to be aware of all the procedures and documentation involved. Before applying for a home loan in Killeen, TX, be clear about your budget and the term period for which you want the loan. Below is a detailed list of various do’s and don’ts that you must follow:

DO’S:

Know what you can afford: Before submitting the application, you need to finalize the home that you want to buy. The value of your home will have a direct impact on your monthly loan payments. Evaluate all your expenses to determine the amount that you can easily pay towards the home loan every month. Make sure you choose a home that suits your budget.
Conduct thorough research: You need to conduct proper research while choosing your loan. Check all the options and available loan plans from various financial institutions before making any decision. It is wise to choose a loan that allows you to prepay the amount at any point of time without levying any additional charge.
Keep your EMIs unaltered: It is best to choose a loan which has unaltered EMIs as you will not have to worry about variation in interest rates during the tenure of the loan. If you are in a position to prepay the loan at any point of time during your loan period, request for a reduction in the number of your EMIs. Therefore, always settle on an EMI that you can comfortably pay without putting a burden on your pocket.

DON’TS:

Change jobs before closing the home loan: It is imperative not to change jobs till your home loan is closed. Make sure you talk to your mortgage provider before taking this step of changing your job and ask if it would have any effect on the terms and conditions of your loan.
Ignore additional costs: Apart from the home loan and interest, you may also have to incur other charges such as brokerage fees, loan fees, stamp duty etc. Therefore, do not forget to keep a check on the additional costs while finalizing your budget for the home loan.
Make a hasty or uniformed decision: It is best not to make a hasty decision while deciding the loan plan. Get a quote from at least three home loan providers in Killeen before choosing the one that suits you the best.

We, at Greater Central Texas Federal Credit Union, offer low interest home loans in Killeen. For more information, you can call us at (254) 690 – 2274.

Things First-Time Home Loan Borrowers Must Know

8. March 2016 Administrator Home Loans (0)

Buying a home is one of the most important and biggest financial decisions that you may take in your lifetime. The process of taking a loan to buy a home may seem overwhelming, particularly for first time buyers. The paperwork, jargons and formalities may prove to be too mind-boggling if you are not prepared.

Following factors will help to understand the constituents of a home loan and ease out the process if you are first time home loan borrower.

Principal Amount: This is the amount that you are looking to borrow. This may not be the actual price of the home as some investment needs to be done by the buyer in the form of down payment and only the rest will be extended as loan. The amount you can afford as down payment must be carefully decided keeping your financial position in mind.

Interest rates: There are two types of interest rates that you can opt from. Variable rate depends on the situation of the market and suits a borrower who can afford the volatility of the rate. Fixed rate remains the same for the entire tenure as agreed at the time of loan approval.

Eligibility: It is important to review your credit history so you are aware how much loan amount you are eligible for. You can also get a co-applicant for a loan that has a steady income to improve your combined eligibility and up the amount you can take as loan.

Time Period: After evaluating your current and future financial requirements, decide on the time period for which you will repay the loan amount. This may vary from 10 to 20 years and will affect your monthly payouts.

Processing Fees: Ask the agent at the credit union if there is any processing fee for the loan you are applying for. In some cases, this fee is waived off for customers depending on schemes offered by the lender and in other a percentage of the loan amount is charged.

Pre payment charges: Check if you will have to pay some extra charges in case you wish to pay your loan amount before the actual date. This may be a possibility if your financial condition improves and you are in a position to pay-off the loan.

Check all papers: Once the application has been processed, read all documents carefully. Every minute detail must be clear to you so there are no disputes in the future. You must also save all correspondences for reference.

We, at Greater Central Texas Federal Credit Union offer home loans at affordable interest rates. For more information, you can call at (254) 690 – 2274.

Tips When Applying For A Home Loan In Killeen

20. January 2016 Administrator Home Loans (0)

When buying a house in Killeen, TX, make sure you have also done enough homework on the long term liability that it entails. There are some important things to keep in mind so that the process is smooth and you can buy your dream home without any financial constraints.

Improve your creditworthiness: The lender must see that you are worthy of the credit you are seeking. This means that how you are managing your other debts, i.e. if you are paying installments on time or before due dates. If a lender sees a positive behavior with regard to your other debts, he may extend certain advantage in your current loan.

Consider pre-approval: Before you start looking for a house, get a pre-approved loan so you can have a realistic idea about how much you can spend. A pre-approval will determine how much money you are qualified to borrow for a purchase.

Keep all documents ready: When applying for a loan, the lender may ask for certain financial documents. Spend some time in getting all paperwork in order so the loan process is accelerated. Your bank statements, salary slips, tax papers etc. are some examples of documents you may need.

Explore the entire market: There are many players offering home loans in the market and thus it is wise to explore all the options. Lenders may provide discounts, better interest rates or additional benefits which must all be considered before making the decision.

Decrease your loan value: Try to make as much down payment as you can. Bringing down your liability will improve your creditworthiness and lower your monthly payments. You could use the existing funds to fuel this payment.

See your financial situation: It is important to do your number crunching before you set out looking for the right loan against your home. See your financial position for next few years, exact value of the property you plan to buy, monthly expenses etc. before you fix the amount.

Understand loan types: One should know the difference between fixed and adjustable rate loans. While the former doesn’t change even if there are fluctuations in the market, the latter may depend on the prevalent base rate. See your own situation and decide which of the above will better cater to your needs.

Be patient: See the financial market and then decide if it is feasible and sensible to take a loan. Do not make any desperate decision as you may get higher rates or fewer benefits on your loan.

It is always better to take advice from an expert so you are better prepared before you set out to seek home loan.

We, at Greater Central Texas Federal Credit Union, offer affordable home loans in Killeen, TX. For more information, you can call at (254) 690 – 2274.

Eligibility For Home Loan In Killeen, TX

21. December 2015 Administrator Home Loans (0)

A home loan is a perfect way to purchase your dream house in Killeen, TX. However, before applying for a loan from a credit union or any other financial institution, it is important to know whether you are eligible for the same or not. It will help you save time and simplify the home loan process.

Listed below are some eligibility criterion set by most financial institutions in order to apply for a home loan in Killeen:

Age: Age is an important consideration for home loan approval. Younger people are more likely to get a loan as compared to those who are nearing retirement.

Source of income: Your source of income along with its stability is an important factor taken into account by a credit union. For instance, having a salaried job can fetch you a higher loan amount because of your job stability.

Additional debts: If you have an existing loan repayment, it can affect your chances of getting a home loan from credit union. It is better to pay off all your smaller loans (if any) before applying for a home loan. Additionally, having a good repayment history may also increase your chances of getting a home loan.

Proof of income: You will be required to show at least three of your recent pay slips to your lender. If not, you may be asked to submit a letter from your employer which states your annual salary. In case you are self-employed, you may be asked to provide the financial accounts for the past two years.

Debt to income ratio (DTI): Your debt to income ratio is another factor considered by a credit union before approving a home loan. It is basically a measure of your ability to manage monthly payments and repay debts as well. DTI is calculated by dividing total recurring monthly debt by gross monthly income. You should calculate it prior to deciding how much loan you want.

Credit score: Having a good credit score increases your chances of getting a home loan approved easily. Therefore, it will be beneficial if you maintain a decent credit score by paying all your installments and loans on time.

We, at Greater Central Texas Federal Credit Union, offer affordable and convenient home loans to our members in Killeen, TX. To know more about our services, feel free to call us at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX 76542.