Home loans enable you to purchase your dream house while not having to make a large one time investment. It helps you instead by letting you stagger payments monthly over a set duration of time. Taking out a home loan can be a relatively complicated process, depending on market conditions and your own requirements. There are a lot of things to consider, including the amount of the loan, the conditions and duration of repayment, the rate of interest you will be charged and the amount of the monthly payments you will have to make. While for most people, the procedure might go off without a hitch, there are a number of mistakes that can significantly increase the amount of time and hassle involved. Avoiding these mistakes will surely put you in a better position to get your home loan processed smoothly and fast.

1. Getting a Credit Score – The one thing you should never forget while applying for a home loan is to get a comprehensive credit score. You should use the service of a reputed and effective credit rating agency to get your credit evaluated and to make sure that your credit score is free of errors. In fact, it is a good idea to get a credit score sheet out periodically so you can stay on top of your credit records.
2. Avoid other Loans –While applying for a home loan, make sure that you do not apply for other kinds of credit at the same time. For at least a time period of six months before your home loan application gets through, you need to ensure that you do not apply for other kinds of credit like personal or auto loans. This might lead to your loan application getting cancelled.
3. Check your Source – When applying for a home loan, make sure that you perform thorough checks on the institution that you are considering for the loan. Carefully check the terms of the loan and go through all the documents carefully before deciding on a particular loan. You can also hire the services of Greater Central Texas Federal Credit Union that helps get secured home loans and provides assistance through the entire process.
4. Consider Pre-approval – If you have had a successful and long relationship with an institution, you might be eligible for a pre-approved home loan. These loans take less time and paperwork to process, and make the processes much smoother altogether. You should not miss the chance to grab a pre-approved home loan offer if you can get your hands on one.

To procure quick and affordable home loan in Central Texas, visit us at Greater Central Texas Federal Credit Union. We are located at 3305 E Elms Road, Killeen, TX 76542. You can also call us at (254) 690 - 2274.

• 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.

Car loans are a great way of getting the car of your dreams regardless of whether you have the cash or not. The only arduous phase in getting such a loan is the preliminary one where you need to do some homework on the financial institutions offering loans and what their terms and conditions are. It is very important to be clear about the fundamentals of a car loan and for this, you might have to ask your lender some crucial questions. Those taking such a loan for the first time might not even be aware of the intricacies of a car loan, and could end up in complications later on.

Anyone opting for a car loan should ask questions relating to the following points:

• Interest rate: You must ask about the rate of interest being offered on the loan to assess what your total costs will be at the end of the loan term. Credit unions are known to offer loans at very competitive interest rates, which make them a cheaper option in the long run.
• Term of the loan: Do inquire about the term of the loan, as a longer term will mean you will have to pay a lower amount of installments each month. On the other hand, a shorter term will require you to pay larger installments, which might become burdensome for some. Information on the term of the loan is very important to help you judge how much you will be comfortable paying each month.
• Down payment: A larger down payment will cut down on your interest charge thus lowering your costs while a smaller down payment will mean a higher interest. It is good to clarify how much the lender expects and what scheme of things will suit you the most.
• Prepayment of the loan: Ask your lender about the terms and conditions related to prepayment of loans. In some cases, the lenders charge a penalty from the borrower for paying back the loan before the stipulated period. Others do not charge penalties but refrain from refunding you any finance charges that you might have incurred.
• Late charges: Ask about the late charges that you will have to incur in case of a delay in the payment of an installment. The late charges are usually a percentage of the unpaid amount regardless of whether you have paid off a partial amount.

For all kinds of auto loans, contact us at Greater Central Texas Federal Credit Union at 3305 E Elms Road Killeen, TX 76542 or give us a ring at 254-690-2274.