Buying a new vehicle can be an overwhelming experience, especially for a first time car buyer who has no knowledge of the intricacies surrounding this deal. It is advisable to carry out some basic research before taking the plunge into making this vital purchase, since the subsequent financial repercussions can affect you for several years following the deal. Being well-informed not only helps you to make a smart purchase, but can also significantly reduce the rate of interest on your car loan. The following tips guide you on how to get the lowest used or new car loan in Texas:

• Ensure that you are well informed of the prevailing market interest rates, as well as other financial aspects of the purchase, before walking into the dealership. Coming across as a well-informed customer helps you to fare better as far as negotiations are concerned.
• It is also advisable to shop around with various dealers before settling for a deal, since the rates offered can differ significantly. You can find websites that will allow you to carry out this comparison at a single hub.
• Be sure not to merely focus on monthly payments when it comes to discussing the money involved. It is important to look at the bigger picture, and make sure that you are well-aware of the bottom line price of the vehicle.
• While deciding how good a deal is, it is not just the rate of interest being offered that matters, but also the loan term. While comparing different deals, it is a good idea to consider the total amount of money that you will end up paying.
• Having a substantial amount of money to offer as down payment can help you to secure a good deal even with an average credit score. A high down payment means a lower rate of interest, as well as a shorter loan term.

If you are looking for a cheap auto loan in Texas, the Greater Central Texas Federal Credit Union can help you secure the best possible loan based on your financial situation. We are a non-profit organization and are committed to providing financial assistance to our members. Our friendly services, low interest rates, flexible loan terms, and quick loan approval ensure a positive experience for you when you apply for a car loan with us. Contact us today at (254) 690-2274 to learn more about our auto loans in Texas.

• 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.