A secured loan is one in which the borrower puts up a personal asset as collateral, based on which the value of the loan is determined. In most cases, the collateral is the same item for which the loan is being borrowed, which in the case of an auto loan is the car. This means that the lender can repossess the vehicle if the borrower fails to make the agreed-upon payments.

In some cases, the lender might also ask for additional security on top of vehicle for which the loan is being taken. This could be in the form of the borrower’s home, boat, or other property, which the lender holds against the loan. The legal document possessed by the lender in case of a secured loan is known as a lien, which the lender releases upon repayment of the loan. In case the borrower fails to repay the loan, the borrower can legally exercise the lien to take possession of the collateral.

The requirements for getting a secured auto loan in Texas are:

• Verifiable income: The primary requirement by most lenders for secured auto loans is a verifiable source of income. This could be in the form of paycheck stubs from several previous pay periods, bank statements showing regular monthly deposits from a certain source, or federal tax returns in case you are self-employed.
• Residency: The lender will usually want to know that you have been occupying your current residence for a sufficient period of time- usually 12 months. If you have recently moved into your present home, you might need to show that you have resided at a single address for a period of at least 12 months in the past ten years.
• Steady employment: The lender wants to ensure that you shall be able to make payments against your loan regularly, which usually comes with steady employment. You should be able to prove that you have been steadily employed for the past 12 months or more. Self-employed individuals or those with alternate sources of income need to prove that they have a steady source of income.

If you fulfill all the above requirements, you should be eligible to get a secured auto loan in Killeen, TX. Be sure to shop around and compare interest rates, penalties, and benefits offered by different lenders, before settling for a secured auto loan.

• 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.