GCTFCU Blog | Tips When Applying For A Home Loan In Killeen

Tips When Applying For A Home Loan In Killeen

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.

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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