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

Home Loan: Checklist For Borrowers

19. November 2015 Administrator Home Loans (0)
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. 
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GCTFCU Blog | Factors Affecting Home Loan Interest Rates In Killeen
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Factors Affecting Home Loan Interest Rates In Killeen

15. July 2016 Administrator Home Loans (0)
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.

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