Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Applying For A Home Loan In Killeen, Texas

19. February 2016 Administrator Home Loans (0)
Whenever you are planning to buy your dream home in Killeen, TX and applying for a mortgage, the most important thing that you need to focus on is your budget. You must know how much monthly installments you can afford to pay. In addition to the EMIs, some other costs are also included in the home buying process. This may comprise the closing costs, credit report fees, home appraisals, application fees, taxes, title transfer fees etc. Therefore, you need to take all factors into account before applying for a home loan.

Below are some tips that can be utilized when you are going to submit a loan application at a credit union:

  • Save money: The terms and conditions for getting a home loan approval keep on changing from time to time. Therefore, if you are planning to apply for a home loan, make sure you have enough cash reserve. You may need to pay the down payment right away once your loan is approved.
  • Get pre-qualified: Knowing how much you can afford is a key step in getting pre-qualified for a loan. Your lender may ask questions pertaining to your monthly income, estimated down payment and the assets you own. Pre-qualification helps in determining your borrowing capacity but it does not guarantee an approval for your loan.
  • Get pre-approved: In order to get pre-approved for a housing loan, you need to submit your recent bank statements, proof of income, and income tax return papers along with employment information. This will help your lender in cross-checking if you have sufficient funds to repay the loan amount.
  • Compare housing loan rates: Compare the various housing loan rates being offered by different credit unions to select the most suitable plan. Most of the credit unions in Killeen offer flexible loan terms thereby making it easier for customers to get approval.
  • Know your credit score: It is important to review your credit score before applying for a home loan. This is a critical factor in deciding your eligibility for a home loan. Also, it is imperative to pay all your bills on time, lower your debts and have a good credit report.
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 or visit 3305 E. Elms Rd., Killeen, TX  76542.
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GCTFCU Blog | Terms You Must Know Before Taking Home Loan
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Terms You Must Know Before Taking Home Loan

5. November 2015 Administrator Home Loans (0)
When applying for a home loan, there is a lot of paperwork and documentation that you need to undertake. There are a number of jargons that you need to be familiar with for a hassle-free loan process. Here is a list of some of the common terms that you may come across while taking a home loan in Killeen, TX:

  • Offer Letter/Sanction Letter: It is a formal confirmation letter given by the financial institution from where you are taking the loan. This letter states that you have been duly considered to be one of the loan applicants. However, this letter does not confirm the approval of a home loan. The loan will only be sanctioned after verifying all the documents and eligibility criteria of the applicant.
  • Equated Monthly Installments (EMI): EMI is the amount you repay to your lender every month. It includes the principal repayment along with the interest amount. Three basic factors are considered while deciding your EMI. These include the principal amount, loan duration and rate of interest. An amortization schedule shows how your EMIs have been formulated over the period of entire loan term.
  • Pre-EMI: If you buy a property that is still under construction, you will be given only a part of the loan amount. You are required to make the interest payments on this partial amount. These payments are known as pre-EMI. This eventually means you will have to keep on paying more interest to the financial institution till the time your builder takes to complete the construction of the property.
  • Credit Appraisal: The process of credit appraisal involves looking at various factors before finalizing the loan. The financial institution will consider parameters such as income, age, savings, qualifications, work experience etc. They will also check the number of loans you are presently servicing. Your eligibility for the loan will only be finalized after scrutinizing all these factors.
  • Margin: It is important to note that any lending organization will not sanction you the entire amount required for your home. You can get up to 90% of the cost and the rest you will have to put in from your side. This balance amount is called down payment or margin.
  • Post-Dated Checks (PDCs): PDCs are scheduled for future dates and cannot be processed till the mentioned date arrives. Generally, the lending organization will ask you to give them post-dated checks for one to two years. These checks need to be addressed to the credit union or home loan company. The exact amount of EMI to be paid should be mentioned on these checks.
To know more about the home loan process, feel free to contact Greater Central Texas Federal Credit Union at (254) 690 – 2274.
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