GCTFCU Blog | Home Loan Tips

Home Loan Tips

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.

Benefits Of Using A Credit Union

Over the years, credit unions have emerged as a safety refuge for people who wish to save money as well as earn interest out of their savings. These are not-for-profit institutions that aim at keeping the members first. They offer a wide range of financial services, membership benefits and attractive policies which sets them apart from other financial institutions.

Discuss below are some benefits of using a credit union:

Superior service that keeps members first
Credit unions are financial cooperatives that are owned by the members. Their aim is not to make big profits for stockholders, but to provide financial assistance and customer service to the shareholders. The credit unions take an extra step where they involve the members to vote on the new policies and take account of the suggestions.

Credit unions offer lower interest rates
Owing to their not-for-profit status, credit unions offer high rates on savings account and lower rates on loans as well as credit cards. These rates are competitive and promote savings. Thus, you can enjoy lower rates on your credit cards, house loans and auto loans while you can earn a higher rate of interest on savings and cash deposits.

No minimum balance constraint
Unlike other financial institutions, a credit union does not have to maintain a minimum balance or cash reserve ratio. Thus, it is not mandatory for the account holders to maintain a minimum balance in their financial account. This feature allows customers to withdraw all or keep no money in their account.

Flexible fees
Credit unions are very flexible when it comes to charging fees. They usually aim at charging less and keeping the costs low for the members. They prefer to eliminate a few products and services in order to cut costs, rather than piling up on the fees.

Easier access to cash
Credit unions have come up with the CO-OP ATM network and a shared branch alliance. This includes surcharge-free cash machines and shared branching that gives members the ability to conduct in-person transactions at a larger number of branches across the state. Also, these CO-OP ATMs do not charge any transaction fee.

Friendly and cooperative staff
The staff at credit unions is friendlier and more cooperative as compared to other financial institutions. They are also easily accessible to address your queries and concerns regarding any financial matter. They only invite members who are local and thus are comparatively smaller. This allows them to be well connected with their surroundings and better at giving feedback.

Provides loan regardless of credit history
This is another major benefit of being a member at a credit union. These institutions are willing to provide quick loan approval to people regardless of their credit history. They also offer programs that help you manage your budget and unexpected expenses.

The Add-Ons
A more attractive feature of opting for a credit union is the additional products and services they offer, besides financial services. You may come across some credit unions that have provisions like individual health insurance and financial advisory services. They aim at community service and providing financial education.

All in all, credit unions prove to be community friendly and more welcoming when it comes to providing financial services to the local people. They offer a lower interest rates, and fee -free ATM transactions. Thus they work on a different and more welcoming business model, which makes them customer friendly.

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