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

Loan Checklist At Killeen Credit Union

When you are planning to apply for a loan at credit union in Killeen, TX, the foremost thing to consider is your budget. You should assess your financial situation and ability to repay before making the final decision. In addition to budget, paperwork is equally important for loan approval. Make sure you have all the documents required to complete the loan application process.

Below is a checklist which should be considered before applying for a loan at credit union in Killeen:

  • Research thoroughly: It is important to research thoroughly and compare interest rates offered by the credit unions in your area. This will help you narrow down your options and find the most affordable loan plan.   
  • Prepare your credit report: Make sure you check your credit report before applying for a loan. It should be error free and should not contain any pending debts. All the bills and credit payments should be made on time.  
  • Save money: If you have a good savings record, your chances of getting a loan are higher. Increased savings can help to build security which can make it easy for you to apply for a loan. It can also be helpful in making the down payment if necessary.        
  • Income and employment verification: You may have to submit the details of your income for the last three months, wage and tax statement from the employer, recent bank account statements etc. to the credit union. Make sure you keep all these documents handy so that you do not have to face any trouble later on.  
  • Get pre-qualified: You can get an estimate of the loan from the credit union if you provide a clear picture of all your assets, debts and income. This can help in determining your borrowing capacity, making it easier for you to get pre-qualified.
  • Other documents: For completion of loan application process, you may need to submit additional documents such as photo identity proof, tax return statements, proof of residence, insurance certificate, vehicle information etc. You can also seek assistance from the staff at credit union if you have any queries regarding the paperwork.  
  • Choose the right loan period:  You should choose the repayment period according to your budget. If you decide to repay the loan in a longer time, your monthly installments can reduce, so decide the loan period accordingly.
We, at Greater Central Texas Federal Credit Union, offer affordable auto and home loans in Killeen. For more information, you can call at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX  76542.

Why Opt For A Killeen Credit Union For Auto Loans?

Auto financing has become quite common these days, both for new and used vehicles. In an attempt to find an affordable loan plan, many people are turning to the credit unions in Killeen, TX. These financial institutions provide loans at competitive interest rates and also offer personalized services to the clients. With this, you not only end up saving a lot of money, but the low monthly payments will reduce the financial burden on your pocket.

If you are also looking or an auto loan in Killeen, given below are some reasons you should get in touch with a credit union:  

  • Relaxed eligibility requirements: Applying for an auto loan at a credit union does not require you to have a considerably high income. The loans offered by these institutions have quite flexible terms and conditions. The staff is also willing to make slight adjustments to the loan terms according to the financial situation of each client. Thus, it is recommended that you discuss your requirements with the lender to get the best loan plan.
  • Quick approval: The time frame in which you can get an auto loan approved from a credit union is quite less. Moreover, if you are getting a secured auto loan, you may get it approved within 48 to 72 hours. This is because the collateral decreases the risk for non-payment of the loan, eliminating the need for rigorous background checks and income verification. The credit union may approve your loan according to the value of the collateral.
  • Lower rates of interest: Being a non-profit organization the credit union is not liable to pay state or federal taxes. Therefore, they are able to offer auto loan at a lower rate of interest than other financial institutions in Killeen. The interest rate for auto loans may start from 1.99% APR (for a new car) and 2.99% APR (for a used car).
  • User-friendly loan process: The loan application process at a credit union is quite simple and user-friendly. You can either fill the application online or by visiting the credit union’s office. The staff is quite friendly and will provide you with complete assistance in submitting the application form as well as preparing the documents required for the loan.
  • Member benefits: Besides auto loans, membership at a credit union comes along with a host of other services such as payroll deduction, notary service, MasterCard cash advance, ACH origination, ATM etc.
For hassle free auto loans in Killeen, consider Greater Central Texas Federal Credit Union. For more information about the loan plans, you can call at (254) 690 – 2274 or visit 3305 E Elms Rd, Killeen, TX 76542.

Home Loan: Pitfalls To Avoid

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.

Benefits Of Refinancing Your Car Loan: Credit Union Killeen

In simple terms, refinancing your car loan corresponds to replacing your present loan with a new one with a completely different set of terms and conditions. The eligibility criterion for getting a new auto loan is not very difficult to fulfill. You only need to be regular with your previous payments to make the refinancing process extremely simple. Considering the benefits of getting your car loan refinanced from a credit union in Killeen, TX, it is definitely an option worth considering.

Listed below are some of the advantages of refinancing your car loan:

  • Reduces the monthly installments: Refinancing can significantly bring down the monthly payments towards your car loan. Having low monthly payments allows you to manage your household finances more efficiently and make savings at the same time. You can even invest your money to receive significant monetary returns in the long run.
  • Can decrease the interest rate: Apart from low monthly payments, car loan refinancing can also help in decreasing your interest rate. You can get the new loan at a lower rate of interest from another lender. The lower rate of interest brings down your overall repayment amount you owe to the lender.
  • You can alter the length of loan: Though long term loans equate to lower monthly payments, you end up paying more interest to the lender. However, if you opt for refinancing your car loan, you can change the loan term and the monthly payments that go with it.
  • You can own a car previously on lease: If there is an instance where the lease on your car is about to finish, you can purchase it by choosing the option of auto refinancing. The loan obtained from refinancing can be utilized to buy out the lease and give the payments to the lender. You will be the owner of the car when the loan term ends.
If you are looking to refinance your car loan in Killeen, TX, consider Greater Central Texas Federal Credit Union. For more details, you can call us at (254) 690 – 2274 or visit our office at 3305 E Elms Rd, Killeen, TX 76542.

Factors To Consider While Applying For Car Loan In Central Texas

When applying for a car loan in Central Texas, you need to choose the one that you can easily repay along with the specified interest rate. It is important to consider certain factors so that you find a loan plan within your budget. Whether you are planning to buy an old car or a new one, make sure you consider the following parameters:

  • Budget: Calculate your budget to find out the monthly amount you can manage to repay your car loan. It is best to opt for a used car if you have a low budget as going in for an expensive one may put a financial burden on you. Apart from monthly installments, you will also have to spend money on insurance, car maintenance, registration etc. Keep all these expenses in mind before making a decision.
  • Interest rate: The amount of money you need to pay as interest hugely affects your EMIs. Therefore, you need to check the interest rate with the credit union where you are planning to apply for the car loan. It is better to compare the rates from at least three credit unions and choose the one that suits you the best.
  • Type of car: Depending on your budget and daily use, you need to decide if you want to buy a new or a used car. A used car is generally the best choice in case you drive occasionally because it will cost you less. On the other hand, if you plan to use the four-wheeler on a daily basis, it is better to check out the latest car models and choose the one that fits your budget.
  • Credit score: Before applying for a car loan, keep a check on your credit score. It is imperative that you clear all your previous dues (if any) and be regular in your loan payments as well. Your credit score has a bearing on the approved amount of loan and the interest rate.
  • Down payment: You need to make an initial down payment when you finance a new car. Although a lower down payment may seem lucrative in the beginning, it can result in higher EMIs. This will consequently increase the tenure of your loan. So, you need to consider the amount you can afford to pay as down payment and the impact it may have on your loan.
We, at Greater Central Texas Federal Credit Union, offer low interest loans for new as well as used cars. For details, call us at (254) 690 – 2274 or visit our office at 3305 E Elms Rd, Killeen, TX 76542.

Factors Affecting Home Loan Interest Rates In Killeen

Everyone wants to get a home loan with the least interest rate so that it is easier to repay the amount. However, the actual cost of the loan depends on various factors. You need to compare quotes from different credit unions in Killeen, TX to know the best home loan rate that you can get.

Below are some factors that can help in determining the rate of interest that you can get on a home loan:

  • Tenure of the loan: Your loan term is one of the deciding factors when it comes to determining the rate of interest. You will generally have a lower rate of interest if you opt for a shorter loan term. However, the monthly payments are higher in this case and you need to plan your budget accordingly.
  • Location of the property: Credit unions have a specified criteria for determining the rate of interest depending on the location of your property. For instance, if your home is situated in an earthquake or flood prone area, you may need to make higher interest payments. The rates may also differ for properties in rural and urban areas.
  • Credit score: The credit score helps the lender get an idea about your ability to repay the home loan. It is determined after checking the details of your payment history of all the loans and credit card bills. Therefore, it is important to examine all your debts and ensure that you have a decent credit score before applying for a home loan.
  • Type of interest rate: There are two broad classifications of the interest rate that you may get on your home loan - fixed and variable rate of interest. While the rate of interest does not change throughout the loan term in the first case, it fluctuates according to the market scenario in the second instance. You can initially get a lower rate of interest if you opt for variable rate but it may increase afterwards.
  • Down payment: A higher down payment towards the home purchase can fetch you a lower rate of interest. This will lessen the amount of money you need to borrow which, in turn, will reduce the risk for the lender. So, make an effort to give at least 20% of your home’s value as down payment.
For affordable home loans in Killeen, consider Greater Central Texas Federal Credit Union. For details about the loan plans, you can call us at (254) 690 – 2274 or visit 3305 E Elms Rd, Killeen, TX 76542.

Auto Loans In Killeen: Common FAQs

Getting an auto loan from a credit union in Killeen is a fairly simple process. However, before applying for a loan, you need to be clear about your requirements and budget. Besides, there may be a lot of questions and concerns that you may have in your mind. Listed below are some of the common questions asked by people while applying for an auto loan in Killeen:

Q: How do I approach for a car loan?
A: You can research online or contact the credit union in your area to know about the vehicle financing options available. After comparing the interest rates offered by different institutions, you need to submit an online auto loan application form. Depending on your eligibility, you may get intimation from the lender to process your application further for loan approval.

Q: How much loan can I get from the credit union?
A: Depending upon the terms and conditions of the credit union, you may get loan up to 90% of the total value of the car you are planning to buy. However, certain factors may influence the actual amount approved by the credit union. These may include the price of the vehicle, resale value, insurance costs, your income etc.

Q: How is the interest rate determined for my auto loan?
A: The interest rate for auto loan is determined after considering factors such as credit history and loan amount sanctioned. The credit union may evaluate your ability to repay the loan while deciding the interest rate. The length of loan term and amount given as down payment are some of the other factors that may be taken into account.

Q:
What are the important documents that I need to submit?
A: While applying for an auto loan, you may need to submit proof of your income, credit history, residence, age, financial statements etc. You will also be required to provide vehicle information to the lender whether you are buying a new or used car. This includes details such as: year of manufacturing, model, vehicle identification number etc.

Q: If I decide to repay my auto loan early, is there a pre-payment penalty?
A: Though most of the financial institutions do not have a pre-payment penalty, you need to check out the specific rules of your credit union. Depending on the specifications of your loan as well as the terms and conditions, you may or may not be able to repay the loan early.

For affordable auto loans in Killeen, TX, consider Greater Central Texas Federal Credit Union. For details about the application procedure, you can call at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX  76542.

Tips To Reduce Your Monthly Auto Loan Payment

If you are planning to finance your next vehicle, it’s a smart idea to consider various options to lower your repayment options. Factors such as the make of the vehicle, total loan amount, existing interest rates, your credit rating etc. play a major role in determining the loan repayment you may have to pay to your credit union. It is also important to note that interest rates for used cars are usually higher as opposed to a new one.

The following tips can help to reduce your monthly auto loan payments:

  • Refinance your loan: The term ‘refinancing’ means to repay your current loan by taking another loan which has lower interest rates. It helps to bring down your monthly payments and allow you to pay off the loan amount in a less period of time, thus making the whole procedure convenient.
  • Extend loan payment term: The longer your loan payment period, the lesser monthly installment amount you will have to pay. Carefully assess your existing loan repayment ability and see if you need to extend the term.
  • Save for down payment: When you think about making an auto purchase, make sure you plan much in advance so you can save up for the down payment. The higher the down payment, lower will be the monthly payouts.
  • Strengthen your credit rating: If your credit rating is strong, it is highly possible that you will get the lowest possible interest rates. This is because a good credit rating assures that the lender will receive timely repayments. Hence, it minimizes the risk for the lender which, in turn, lowers your overall monthly auto loan payment.
  • Shop around: Just as you shop around for your car, make sure you request quotes from at least three credit unions to compare their terms and conditions. Evaluate the interest rates and flexibility in repayments offered by them. Only after careful comparison must you finalize a lender that offers the most affordable auto loan plan.
We, at Greater Central Texas Federal Credit Union, offer low interest auto loan to the clients in Killeen, TX. Our staff will guide you through the different options available as well as assist in the submission of loan application. For more information about the auto loans offered, you can call us at (254) 690 – 2274 or visit our office at 3305 E Elms Rd, Killeen, TX 76542.

Home Loan Process In Killeen, TX

Buying a home is a big decision which may get a bit overwhelming if one does not understand the mortgage process. There are some tangible preparations that need to be made while deciding on a home loan. A credit union works towards making the process as easy and smooth as possible for its members.

Here are the steps involved while applying for a home loan in Killeen:

  • Get a pre-approval: A pre-approved loan will let you know the type of home you can afford to buy. It also assures the seller that you are a responsible buyer and genuinely interested in buying the property. The lender will assess your total income, debts and other financial liabilities to evaluate the loan amount you can be pre-approved for. Once the amount is known, you can go about scanning for a suitable home in Killeen that suits your requirements.
  • Keep all documents ready: All the important financial documents like bank statements, employment letter, salary proofs, home insurance, tax returns etc. must be kept ready. These may be reviewed by your loan officer to assess your borrowing ability and submit the application.
  • Understand loan type: One must decide if he needs a fixed rate mortgage (interest rate stays the same during the entire tenure of the loan) or flexible mortgage rate (interest rate fluctuates according to the market trends). This choice may depend on your current and future financial condition.
  • Closing the loan: Once all the paper work is done with the credit union, the next step is to go through the terms and conditions of the loan plan all over again. You may need to submit a copy of the property documents and a few postdated checks to close the deal.
Your search for your dream home in Killeen will be fulfilled if you have invested enough time in understanding the loan process and making viable decisions.

Contact Greater Central Texas Federal Credit Union for hassle free home loans in Killeen, TX. For details, call at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX  76542.

Benefits Of Getting Loan From A Credit Union

A credit union is a financial cooperative for the people of a community. Since the purpose is to work for the benefit of the members, it offers home and auto loans at fairly simple terms that can efficiently work in everyone’s interest. Following are some upsides of getting loan from a credit union:

  • Willingness to give loans: Credit unions understand their members‘ needs to take loans and patiently assess their credit history and financial ability to provide them the required amount. The loan eligibility requirements are not so stringent at a credit union which increases the likelihood of getting an approval.
  • Low fee and rates: The purpose of a credit union is not to make profits but to offer financial aid to the members to its members. Thus, they offer low interest rates and processing fees on all loan plans.
  • Personalized service: The credit union board of directors consists of the members and thus you can expect to receive personalized services. The staff reviews your concerns regarding loan term, repayment flexibility and financial needs to offer a customized loan plan.
  • Provide proper education: Credit unions provide complete assistance to the members regarding the financial tools and resources available. Thus, you can seek guidance regarding how much money you should borrow or the premium amount you should settle on as per your financial position. Credit unions have professionals to guide you through the loan process.
  • Unions are stable: Market fluctuations do not make your monthly repayments volatile when you have get a loan from a credit union. This is because the source of their finance is the deposits of other members. This make the credit unions a stable source to finance your home or vehicle purchase.
  • Other benefits: Besides simplifying the loan process, the credit unions also offer many other services for the benefit of its members. These may include wire transfer, savings and checking account, MasterCard, ACH origination etc.
A credit union provides the required convenience and stability that every loan seeker looks for. You may compare the terms and rates from other available options too before making up your mind. It is not a problem if you aren’t a member of a union yet. It is easy to gain membership and reap the benefits of the financial services offered by a credit union.

If you are looking for an auto or home loan in Killeen, TX, consider Greater Central Texas Federal Credit Union. For details about our loan plans, you can call at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX  76542.
GCTFCU Blog | Credit Union Killeen TX | Home Loans, Secured Auto Loan in Central Texas
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Reasons You Must Join A Credit Union In Killeen, TX

Credit Union is a not for profit institution that works collaboratively with its members to ease the financial liabilities of the clients. It lays emphasis on customer service and working for the benefits of the members. As the good word is spreading, more people are showing interest in joining credit union in the Killeen area as it offers various benefits.

  • Focus on the community: A credit union aims at uplifting the financial understanding and positioning of its members. They plough back the finances they raise for the improvement of the objectives, thus making them a viable social organization.
  • Easier loans and lower interest rates: Accessibility of loans at competitive interest rates is one of the biggest advantages of a credit union. The application process is much easier and the loans are approved in a shorter period of time.  
  • Lower banking fee: Their overdraft policies, minimum balance policies are competitive and designed keeping in mind the benefit of the members.
  • Easy to join: It is easy to become a member of a credit union. Membership may be accepted depending on your area of residence, thus opening its gates to more and more members.
  • Education: One can trust a credit union to offer the best advice when it comes to financial constraints and liabilities. They organize periodic seminars, panel discussions, lectures, and personalized financial counseling to make the members aware of latest financial tools available.
  • Accessibility: Credit Unions are managed by representatives amongst the members and thus are more receptive to an individual’s concern. They are connected digitally, giving its members various windows to interact and exchange views, all round the day.
  • More personal: You can strike personal relations with the staff as they are more forthcoming in attending to your queries than anywhere else. You can discuss your problems, raise queries and express opinions as these unions respond promptly to feedback.
We, at Greater Central Texas Federal Credit Union offer complete financial services in Killeen, TX. We provide low interest home loans, checking accounts, savings account, payroll deduction, MasterCard, wire transfer and may other services to the clients. For more information, you can call at (254) 690 – 2274 or visit our office at 3305 E. Elms Rd., Killeen, TX  76542.

Your Killeen Credit Union Is The Best Place For Auto Loans

Whether you are looking for a loan for a used or new vehicle in Killeen, a credit union can be a great option to consider. Being a non-profit organization, it offers easy financing options to the clients. Also, the loan is approved in much lesser time as compared to other financial institutions.

Given below are some of the reasons you should choose a credit union for auto loan in Killeen:  

  • Higher chances of approval: If you have a lower income, you stand a higher chance of getting an auto loan approved at a credit union than at a bank. The staff at a credit union is inclined towards adjusting the terms of the loan to suit the needs of each client. Pre-approved auto loans may also be extended to make your vehicle purchase a hassle free exercise.
  • Competitive rate of interests: The biggest benefit of getting an auto loan from a credit union is that the interest rates are quite competitive. As these institutions are not liable to pay any state or federal taxes, they are able to offer loans at much lower interest rates.
  • Non-Sales Approach: Since a credit union works for the benefit of its members, the staff does not compel the clients to purchase the loan. Instead, they help the clients compare different loan plans and choose the one that best suits their requirements.
  • Profits are ploughed back: All the profits earned by the credit union are returned back to the members by way of low interest rates, higher dividends and more returns on savings accounts.
  • Friendly service: The management team of a Credit union comprises of members from the organization itself. You may have one to one sessions with loan officers and discuss your queries while your loan is being processed. Unions are flexible and comforting to their member’s concerns.
  • Membership is easy: Becoming a member at a credit union is quite easy. The eligibility criterion to be approved for an auto loan is also not too stringent at a credit union.
If you are looking for an auto loan in Killeen, TX, visit Greater Central Texas Federal Credit Union. We offer low interest auto loans with easy repayment options. For more information, you can call at (254) 690 – 2274.

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.

Secured Loan Checklist Killeen, TX

A secured loan is the one where your asset is kept as collateral and can be taken into possession by the lender in case you are unable to pay back the loan. Secured loans have become really popular over a period of time because you can get them easily approved. Moreover, you can borrow huge sums of money at a lower interest rate.

It is important that you conduct a thorough research about the secured loan rates being offered by the credit unions in your area. This will help you select the most appropriate lender for your loan requirements. It is always beneficial to prepare for your loan well in advance to make the process hassle free and quick. Consider the following checklist before applying for a secured loan:

  • Prepare your credit report: Check your credit report for any errors and make sure you do not have any pending debts. Also, make sure that all your credit card payments have been duly made on time.
  • Save regularly: Establish a good saving record by saving regularly so that you can build up security for your loan. Increased savings make it easier to borrow from a credit union.
  • Get insurance: It is imperative to have insurance prior to applying for a loan. For example, if you are applying for a secured auto loan, you need to show that you are insured to drive a car.
  • Income and employment verification: You will be required to provide details of your income during the last three months, wage and tax statement from your employer, latest tax return details as well as recent bank account statements. Keep all these documents ready beforehand so that you do not face any difficulty when applying for a secured loan.
  • Ask for pre-qualification: Whenever you go to a credit union to apply for a secured loan, you should ask them about the estimate of the loan that you can be given and the interest rate for which you are pre-qualified. For this, you need to show your employment and income verification documents.
  • Other documents: Apart from the above mentioned documents, you also need to submit a photo identity proof, your residential address, contact details of your insurance agent etc.
For affordable secured loans in Killeen, TX, consider Greater Central Texas Federal Credit Union. We offer customized loan plans with low interest rates and easy repayment options. To know more, call at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX  76542.

Fixed Vs. Floating Interest Rate: Home Loans In Killeen, TX

Getting a home loan from a credit union in Killeen, TX is not a very tedious job as there is minimum paperwork involved. However, you need to choose whether you want to opt for a fixed or floating rate of interest. Both the options have their own advantages as well as disadvantages and it is up to you to decide which one is better.

Fixed rate of interest home loans

A fixed rate of interest implies repayment of loan in fixed equal installments during the loan term. In this case, the rate of interest remains constant and does not change with the market fluctuations.

Advantages:

  • No alterations in the rate of interest irrespective of market conditions.
  • Perfect option for people who have fixed budgets.
  • It is a secure alternative.
Disadvantages:

  • Loans are 1 to 2.5% higher than floating interest rate depending on the bank.
  • If the interest rate decreases in the market, you will not get any advantage.
  • In some instances the fixed rate home loan is fixed only for a few years and not the complete loan tenure.
Floating rate of interest home loans

If you apply for a home loan with a floating rate of interest, it simply means that the interest rate will differ as per the market conditions. In this instance, the interest rates are associated with a base rate and a floating element. Therefore, if there is any alteration in the base rate, the interest rate also fluctuates.

Advantages:


  • Cheaper than fixed interest rate home loans.
  • If the floating rate increases than fixed rate, it is temporary and not for entire loan period.
  • Can prove to be beneficial if you want to save money.
Disadvantages:

  • Monthly installments are not constant.
  • You can face difficulty in planning your budget.
  • There has been a hike in floating interest rates in recent times.

It can be concluded that fixed as well as floating interest rate home loans in Killeen have positive as well as negative aspects. Generally, borrowers opt for a floating rate of interest when applying for a home loan from a credit union. However, if you want more security and certainty, it is better to opt for a fixed rate home loan.

If you are looking for affordable home loans in Killeen, TX, consider Greater Central Texas Federal Credit Union. For more information, call at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX  76542.

Eligibility For Home Loan In Killeen, TX

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.

Unsecured Vs. Secured Auto Loans

If you are contemplating on getting an auto loan, there are numerous options available for you. You need to thoroughly research and establish the background of the type of auto loan you want to opt for. Auto loans are basically divided into two categories: secured and unsecured. Before you select an option for yourself, it is better to understand the difference between the two.

Secured Auto Loan:

A secured auto loan is the one in which your asset is used as collateral in case you fail to pay back the mortgage amount along with the interest. In an auto loan, the security is generally your car. This means your lender can sell off your car if you do not return the loan amount.

  • Interest rate: In a secured auto loan, the interest rate does not vary over a period of time. The advantage here is that since secured auto loans are mostly given on a fixed rate and your repayment amounts do not get altered.
  • Loan term: A secured auto loan generally has a shorter repayment term. However, since the risk is minimal in this case, so you are likely to get a lower interest rate.
Unsecured Auto Loan:

If you opt for an unsecured auto loan, you will not be required to give any security from your side. The lender approves the loan on the basis of your current financial resources. Every lending organization has its own criteria to conclude if you are fit for an unsecured loan or not.

  • Interest rate: When it comes to an unsecured auto loan, the rate of interest can either be fixed or variable. This is unlike the secured auto loans where there is only a fixed rate of interest. Although the rate of interest is higher, you can choose between fixed and variable depending on your financial condition. While a variable rate of interest will give you more flexibility, you can also opt for the fixed rate of interest if you have complete control over your finances.
  • Loan term: The loan term for an unsecured auto loan can be short as well as long on the basis of individual assessment.
Both types of loans have their own advantages and you must choose what is best suitable for your individual situation.

We, at Greater Central Texas Federal Credit Union, offer unsecured and secured auto loans in Central Texas. For more information, feel free to call us at (254) 690 – 2274.

Tips To Get The Best Home Loan Deal In Killeen, TX

A credit union is a community organization run by a group of individuals for their own members. Borrowers are increasingly opting for credit unions owing to the ease of getting a home loan from these organizations.

If you are on the lookout for an affordable home loan in Killeen, TX, there are some factors that you need to consider. Do a thorough research about the various credit unions and finalize the one where you can get the best home loan deal.

The following factors should be considered when applying for a home loan:

  • Ask for quotes from various credit unions: Different credit unions will offer you varied rates of interests on home loans. Make sure you ask for a quote to have an idea about your monthly repayment amount. Apart from the rate of interest, you should be able to know the limit up to which you can borrow. Compare quotes from different credit unions and finalize the one that offers the lowest rate of interest.
  • Fixed or adjustable rate loan: You can choose to get a home loan at a fixed rate of interest or an adjustable one. In case you select a fixed rate, the repayment amount remains constant throughout the loan term. On the other hand, the interest charged on adjustable-rate mortgage fluctuates over the time period of your loan. This eventually means your repayments will vary as well.
  • Choosing the loan term: You can get to choose a customized loan term from a credit union. Therefore, you can decide the amount of time it will take you to return the home loan. Depending on your income and expenditure, you can settle for a particular number of years within which you will be able to repay your loan. Though a longer duration can lower your monthly payments, it would eventually lead you to pay more interest.
  • Fees and charges: Check if you need to pay any fees or additional charges before getting a home loan approval. These may include ATM fees, loan fees, wire transfer fees etc.
We, at Greater Central Texas Federal Credit Union, offer hassle-free home loans in Killeen, TX. For more information, you can call us at (254) 690 – 2274 or visit our office at 3305 E. Elms Rd., Killeen, TX  76542.

Home Loan: Checklist For Borrowers

More and more homebuyers are considering credit unions for their home loan needs. A credit union is more considerate towards the financial needs of its members. Thus, it offers loans at competitive interest rates and easy repayment options. The procedure is very simple, quick and requires least paper work.

Here is a checklist you need to consider before applying for a home loan.

Documents: You may be required to provide some legal and financial documents to apply for home loan through credit union. These documents include:

  • Sale Agreement: Before you apply for a home loan with your credit union, it is requisite to have the sale agreement or evidence of deposit. You will need to provide the registered title and location of the relevant property for the pre-approval procedure.
  • Salary Verification Letter: Whether you are a salaried person or self-employed, you need to provide your salary and income verification letter. You need to furnish pay stubs for at least a month’s period for the loan. You also need to attach the recent W-2 statements.
  • Tax Returns: To apply for the home loan, the credit union requires you to provide your completed tax returns including schedules and statements. You need to offer certificate of payment of taxes.
  • ID proof: You must add a copy of your date of birth certificates along with other ID proofs, as they are crucial for the verification of the identity.
  • Attach Credit Report: Your credit score is an important deciding factor, as it will determine the amount of loan that you can borrow from the credit union and the rate of interest that you will have to pay. Check your credit file before applying for the home loan.
Assess your ability to repay: Failure to pay the loan amount can lead to penalties and it will have adverse effect on your credit score. Make sure you have the ability and a steady source of income to ensure that you can repay the amount.

Choose the right loan period: Depending upon your budget, choose your loan period. If you choose a longer period, you may have to pay less every month, but the rate of interest may be higher, so decide the loan period accordingly.

Compare the prices: While applying for a home loan, you need to pay initial valuation and legal fee, which is included in APR, so compare the costs and fee to get the best deals.

We, at Greater Central Texas Federal Credit Union provide home loans at affordable interest rates. For more information, visit us at 3305 E. Elms Rd., Killeen, TX  76542 or call at (254) 690 – 2274

Low Income Auto Loan In Central Texas

Having a low monthly income can make it challenging for you to secure an auto loan. You need a loan plan that suits your budget requirements. A number of credit unions in Central Texas provide auto loans and refinancing options to people in the lower income group. Do a thorough research and compare the interest rates offered by these institutions to choose the one suiting your requirements.

Here are the factors that you need to consider while applying for an auto loan in Central Texas:

  • Period of job: In order to get a quick approval for the loan, you must have spent at least one year in your present job. However, if you did not stick to a job for a year, a credit union may check for at least three years of uninterrupted employment. At the most, you should have changed only 2-3 employers within this period.
  • Down payment: If you are applying for a low income auto loan, you will be required to pay some form of down payment to the lender. In case you don’t have any money at your disposal, you may inquire from your lending organization about the alternatives they can offer.
  • Credit profile: If you have a higher credit score or a longer credit profile, you can get a better rate of interest for a low income car finance program.
  • Duration of the loan: You can get your loan approved at a faster pace if you choose to repay within a shorter period of time. However, loans with shorter durations usually entail higher monthly premiums.
  • Debt to income ratio (DTI): Most of the lenders prefer a maximum DTI ratio between 40 to 50 percent. To calculate your DTI ratio, add up all your bills and divide the total amount by your monthly pre-tax income.
  • Payment to income ratio (PTI): For approving a low income auto loan, most lenders prefer a PTI ratio between 15 and 20 percent. In order to compute the PTI ratio, divide your new car payment by your pre-tax income.
  • Co-signer: There are a few lenders who approve convenient interest rates for low income auto loans in case you get a co-signer and have a good credit rating.
We, at Greater Central Texas Federal Credit Union, offer low interest auto loans in Central Texas. For more information, you can call us at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX  76542.