Buying a home is a dream for everyone as you can customize it according to your lifestyle and taste. However, buying a home is a task that should not be done in haste without prior planning. It is imperative to buy at the right time so that the purchase does not have any serious consequences on your present lifestyle. In order to know if you are ready for buying a home, you need to ask yourself certain questions. These are listed below:

What is your financial standing?

Without a doubt, your financial status needs to be strong before you embark on the journey to buy your own home. You need to look at factors such as consistent monthly income, a stable job, savings as well as your credit history. Since your finances will be finely scrutinized by the credit union and real estate agents, it is wise to be prepared well beforehand.

How much can you afford to pay every month?

If you are looking to buy a high-priced home, be prepared to shell out a high monthly payment. Even if you get a loan approval, consider having a re-look at the price range. You must be easily able to pay the EMI without affecting your monthly expenditure. Create your monthly budget and jot down your expenses for payments as well as luxuries. Always finalize your mortgage payments depending on your budget so that you don’t face any financial issues later on.

Which location do you prefer?

Once you buy a home, you can make numerous alterations in the property but the location will remain the same. Therefore, pay attention to this important aspect before buying a home. Decide whether you prefer to live in the city or countryside. Weigh the pros and cons of both and don’t limit yourself to a particular area. Conduct a thorough research on the Internet to discover good places where you can buy an affordable home.

What are the things you absolutely need in your home?

While conducting your home search, you will come across certain properties that will have all the features you desire but with a higher monthly payment. Therefore, you need to make a prior list of ‘must-haves’ in your property. For instance, a backyard or a specific number of bedrooms etc. could be on your wish-list. Decide on a particular home only after calculating the monthly installments and do your home search accordingly.

Whose names will be mentioned on the lease?

You will be made to sign a lease agreement in order to complete the home buying formalities. It is the most important document declaring the owner of the property. Therefore, if you are planning to buy a joint property, it is best to talk about that with your partner in advance. In certain instances, it may be beneficial to have your parent as your co-signer.

We, at Greater Central Texas Federal Credit Union, offer affordable home loans. To know more about the interest rates and membership benefits, feel free to call us at (254) 690 – 2274.

If you are planning to finance your next vehicle purchase, you may have come across the terms 'secured loan' and 'unsecured loan'. Though both the types of auto loans offer varied advantages, it is best to understand the differences between them to decide which one would be a better option for your particular situation.

Given below is a complete comparison of unsecured and secured auto loans to help you make a well informed decision:

Unsecured Auto Loans
In this, the lender approves the loan on the basis of the credit worthiness of the borrower. There is no need to provide any form of security to the lending institution. Once the borrower submits the loan application, the lender evaluates his current financial resources and previous credit records to determine if he will be able to pay back the amount along with the interest rate.

The typical characteristics of an unsecured auto loan are as follows:

• Interest Rate: The rate of interest quoted for each borrower may vary. Depending upon the borrower's income, credit rating, other financial liabilities and the amount of loan, the lender may charge a reasonable interest rate.
• Premiums: The borrower can either buy the loan at a fixed or variable interest rate. In the former one, monthly premiums remain constant throughout the duration of the loan. However, in a variable interest rate, the installments may keep on changing according to the current market conditions.
• Borrowing Limits: The loan amount that can be sanctioned in this case depends upon the value of the car you are planning to purchase. Usually, you can get a certain percentage of the total cost and the remaining has to be paid by you.
• Loan Tenure: Unsecured loans are available for both short and long term. Short term loans generally have high monthly installments but you end up paying less interest.
  

Secured Auto Loans
A secured loan can be defined as the one in which the borrower is required to put forward a collateral, usually the vehicle itself, against the loan amount. In case the borrower fails to pay back the loan and interest amount within the stipulated period of time, the lender has the legal right to sell the collateral to recover the money.

The typical characteristics of a secured auto loan are given below:

• Interest Rate: The rate of interest quoted for a secured loan is comparatively less. Putting forward a valuable collateral minimizes the risk for the lender as he can easily recover the loan in case the borrower fails to do so.
• Premiums: Secured loans are generally offered on fixed interest rates. Therefore, the premiums remain constant throughout the duration of the loan.
• Borrowing Limits: If you are planning to purchase a luxury car, you should go for a secured loan as it has higher borrowing limits. You can borrow more money against a collateral of similar value, thus, minimizing the investment to be made out of pocket.
• Loan Tenure: As the interest rates are quite low, you can conveniently repay the loan amount over a longer period of time. This implies that you would have to make lesser monthly payments, allowing you to save money for other financial liabilities as well.

How to decide between unsecured and secured auto loans:

Getting an auto loan can be a tricky process and with so many options available, you are quite likely to get confused. It is important that you evaluate your requirements as well as the loan plans to make the right choice. The following factors need to be considered while doing so:

• The car you want to buy
• Monthly installments you can afford to pay
• Other financial liabilities
• Amount of loan required
• Interest rate quoted by the lender
• Loan tenure

As compared to an unsecured loan, you can get quick approval for a secured auto loan, usually within a few days. This is because there is no need for the lender to conduct extensive background and income checks. Also, the terms and conditions for such loans are quite flexible which minimizes the financial burden on the borrower.

We, at Greater Central Texas Federal Credit Union, offer affordable auto loans in Killeen. You can choose from both secured and unsecured loan plans with nominal rates of interest. For more information, feel free to call us at (254) 690 – 2274 or visit our credit union at 3305 E. Elms Rd., Killeen, TX  76542.