Home Loans Tips, Info & FAQs
A loan to help finance the purchase of your home
At United Texas, we offer home loans with a personal touch. Enjoy competitive rates, a streamlined process, and your own home loan liaison to help you throughout the process.
Adjustable vs Fixed-Rate Mortgage: Three Questions to Ask Yourself
A fixed-rate mortgage means you pay the same interest rate throughout your loan. An adjustable rate mortgage is different: you pay the same rate for a set period of time, and then your rate will change. Which type is right for you depends on several factors, so we’ve put together a few questions to help you decide:
1. How long will you have the home?
Adjustable mortgages tend to be a lot cheaper at first, and then fluctuate as the housing market does. So if you are planning on moving in the first five years, you should probably go with the adjustable option. There will still be some risk, but you’re more likely to save.
2. What can you afford to put down?
Adjustable mortgages are usually easier to qualify for, because the risk goes more to you than to the lender. On the positive side, this means you can often still qualify for them if you don’t have very much money to put down.
3. How much are you willing to risk?
This is the most important question. Inherently, fixed-rate mortgages offer more security. Be realistic about what you are willing to risk in order to save on the short term. For example, if you have chosen the home you want to settle down in with your family permanently, you’ll likely want a fixed-rate mortgage instead of an adjustable one.
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With my current finances, what type of loan best suits my needs?
Your financial preparedness will determine what you’re qualified to purchase and what type of home loan fits your budget. Our personal home liaison can help you figure this out.
What is an escrow account?
An escrow account is set up by your home loan lender to pay certain property-related expenses on your behalf, such as property taxes and homeowners insurance.
What are closing costs?
Most home loan professionals will define closings costs as only third-party costs that are NOT associated with the mortgage company. However, the question most consumers are asking is, “what are my out of pocket expenses?” There are four things to consider:
(1.) Down payment. The percentage of the sales price you will be required or willing to put down to purchase your home.
(2.) Prepaid Items. If you have an escrow account, prepaid items will account for the amount of funds to set up the escrow account.
(3.) Third-party fees. These include title company fees, appraisals, inspections, and other fees that are not related directly to the mortgage company.
(4.) The mortgage company’s fees. These include underwriting, processing, origination, discounts points and other fees that the company may charge for services to close your home loan.
What are discount points or origination fees?
Discount points or origination fees are costs associated with purchasing a lower interest rate. Typically a 1% discount point/origination fee equals 1% of the loan amount and will lower an interest rate by 0.125%.
How much of a down payment is required to purchase a home? Is there down payment assistance?
The program you are eligible for will determine the amount of down payment required. For example, an FHA loan requires a minimum of 3.5% down payment, whereas a VA loan does not require a down payment. Different programs have different down payment requirements. Down payment assistance is offered through third-party entities outside of the mortgage company. Mortgage companies may or may not participate with certain down payment programs. Check with your home loan representative to see which down payment programs your mortgage company participates with.
What is a rate lock, and how do I lock my rate?
A rate lock is a means for the borrower to lock in the lender’s current interest rate. Typically, a rate lock will last 15, 30, 40, or 60 days. You may lock in at the time of application, or you may choose to wait until later in the process as long as you are either refinancing your home, or you have an executed contract with the seller. Your loan officer will discuss the best lock period option for you.
Is a home loan with United Texas right for me?
Whether you’re purchasing or refinancing, we’re certain you’ll find we have your best interest in mind.
If you’ll be purchasing but haven’t found the perfect home yet, complete our application and we’ll issue an approval for a mortgage loan now with no obligation.
What is the maximum percentage of my home's value that I can borrow?
The maximum percentage of your home’s value depends on the purpose of your loan, how you use the property, and the loan type you choose. For this reason, the best way to determine what loan amount we can offer is to complete our online application.
Is financing for manufactured homes available?
We define manufactured housing as housing units that are factory built with a steel undercarriage that remains as a structural component and limits the structure to a single story. These types of manufactured homes are sometimes known as mobile homes.
We do not consider other factory-built housing (not built on a permanent chassis), such as modular, prefabricated, panelized, or sectional housing, to be manufactured housing. If your home is one of these types, please complete the application indicating that your home is a single family home.
Should I enter in a purchase contract before I'm qualified?
It is highly advisable that you DO NOT enter a purchase contract until a home loan professional has had a chance to review your credit report and supporting documentation (i.e. income documents & assets).
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Home Loans Why United Texas
- Fast pre-approvals
- No prepayment penalties
- Terms up to 30 years
- Competitive interest rates
- Personal home loan liaison
Jason Guerra was very knowledgeable, attentive and always available to answer questions and remind us of deadlines when it came to our new home purchase.Maria C., member since 1991
I have been a member for 49 years and they have always provided superb service. They financed my very first vehicle, a new 1970 Ford Maverick back in 1969 and they are still taking care of my financial needs including the mortgage on my present house. Thank you for always being there!
Rosa - thanks so much for your feedback. We sincerely appreciate your choice to be a United Texas member and we'll continue to be here for you and your family! Have a great day! - Karla
GREAT BANK. OFFER GREAT RATES FOR FINANCING.
Roy, thank you for the positive feedback on your membership experience with United Texas. We appreciate you!
Ricardo Guzman (Rich) has been an amazing help to us. We initially looked into a home improvement loan. Not only did he help us secure that loan, he also informed us (after reviewing our credit) that he could refinance our car loans at a lower rate with a lower payment. He walked us through the process and made it all as quick and simple as possible. AND it didn't stop there. He then informed us that they had a promotion for transferring loans which entitled us to $100 per loan. So we received an additional $200 in our account! Talk about a nice surprise! I would HIGHLY recommend United Texas to my friends. And I would direct them to Rich. Great experience!!
Audrey - Thank you for your feedback about your recent experience with Rick Guzman. We're proud to be able to serve you. If you need anything else, please let us know. We sincerely thank you for your choice to do business with us. - Karla
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Home Loans How it Works
Starting your home owning process with us is fast and easy:
Become a member of United Texas. All you need to do is open savings account with a minimum deposit of $5.
Apply online to get prequalified.
One of our knowledgeable home loan officers will reach out to you to walk you through the rest of the process.
We’ll contact you to coordinate your closing date.
If you have any questions in the meantime, please contact us.
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United Texas CU is a lender licensed under the National Mortgage Licensing System and Registry under registration number 516820.