Best Mortgage Lenders in Texas

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If you are looking to buy a home in Texas, you will need to find a mortgage lender. Many lenders are licensed to do business across the country or in the majority of states, so even if you are buying a home in Texas, your lender does not necessarily need to be based there.

With prices ranging from a median of $ 195,000 in Killeen to nearly $ 400,000 in the booming capital of Austin, according to the Texas Real Estate Association, the amount of mortgage you will need depends on where you live. Here’s a look at some of the best Texas mortgage lenders.


Methodology

To determine the best mortgage lenders by state, Bankrate assessed lenders based on several criteria, including affordability (APR and fees); timeliness (approval and closing times); and experience (including customer service). In general, the best mortgage lenders have a high bank rate score and high ratings from borrowers.


The Best Mortgage Lenders in Texas

Better.com

The name of the lender says it all: Better.com, also known as Better Mortgage, aims to improve the process of getting a mortgage in Texas – and the majority of other states. The biggest advantages of working with this lender are that you will save money and time: Better not to charge any application, origination or subscription fees; rate quotes come back in seconds; and your pre-approval letter – a must for serious buyers in today’s market – only takes three minutes to generate. Better also has the best bank rate score among the lenders reviewed in Texas – although it’s important to point out that some borrower reviews indicate that the lender could work harder to live up to their name, with a rating of 3.8 out of 5. These brands lag behind some of the competition.

First direct mortgage

You will manage the mortgage process entirely online with First Mortgage Direct, the online lending division of First Mortgage Solutions, with the added benefit of never feeling like you need to act immediately – the lender explicitly states that they are not bragging about no limit. time offers to seduce borrowers. As you move through a quick online process, you can expect prequalification within 24 hours with this lender, and most borrowers close within 30 days. You can also be sure that you will avoid frustrating surprises, as First Mortgage Direct promises no setup fees and no hidden fees overall.

LoanMonkey

Since you are buying a house in Texas, you are one of the few who can work with LoanMonkey, which only works in California and Texas at the moment. While LoanMonkey is a mortgage broker, not a lender, the company can help you find the best mortgage for your situation and get a clear picture of all the fees you’ll pay, all online. Calling its process “The Everything Online Mortgage,” the broker also allows you to sync your banking information online and not upload documents. However, the broker is relatively new to the business, having launched in 2019.

LowRates.com

LowRates (or LowRates.com) aims to offer borrowers the substantial savings that can come with – you guessed it – low rates. While your upfront fees with this lender include a set-up fee of $ 1,495, there are many reasons to consider LowRates for your Texas mortgage: an approval and underwriting process that takes less than 24 hours, down payment assistance options and rave reviews from borrowers. While you should be comfortable with an online experience with this lender, it’s important to note that if you want to speak to someone in person, Sun West Mortgage Company, which operates LowRates, has six branches in Texas.

Federal Navy Credit Union

If you are in the military or have a family member served, add Navy Federal Credit Union to your consideration list. The credit union does not charge any processing or subscription fees and also offers additional guarantees that you get the best deal, including the ability to relock your rate. While you must qualify for membership, you can also take advantage of additional options for banking and other financial needs, including access to ATMs at no additional cost and branches in San Antonio, Houston, Dallas and more. other parts of the state.

Rocket Mortgage

While Rocket Mortgage lacks online fee information, there are also a number of perks about Quicken Loans affiliate lender: a floating rate lock, customer service available through online chat, and payment options at low down payment, to name a few. The biggest benefit, however, could be the testimonials from borrowers: Ninety-nine percent of the 2,000+ borrowers who reviewed Rocket Mortgage on Bankrate would recommend the lender to others.

Texas Trust Home Loans

Texas Trust Home Loans takes pride in helping you avoid some of the additional costs associated with obtaining a mortgage. There are no application or set-up fees with this lender, affiliated with American Heritage Capital, but as with other lenders, you will likely have to pay a fee such as an appraisal, which with this lender amounts to average at $ 490. While Texas Trust ranks a little lower in terms of Bankrate Score (4.3 out of 5), it makes up for that on the crowdsourcing side: with nearly 600 borrower reviews, the lender has a perfect score of 5.0. .

Texas Compliant with Loan Limits

As you work towards getting a mortgage, it’s important to note that your lender isn’t the only one with approval requirements in place. The amount you borrow may have to fall below compliant limits depending on your loan. If it is a conventional mortgage, the limit is $ 548,250 – the limit imposed by the Federal Housing Finance Agency in 2021. If supported by the FHA, your budget will need to be more. small. In most Texas counties, FHA loans cannot exceed $ 356,362 in 2021. However, there are some exceptions in more expensive markets. You can view the list of counties by County of Bankrate Texas loan limits before you start looking for a house.

First-time home buying programs in Texas

If you are a first-time home buyer in Texas, you may be able to benefit from help from the Texas Department of Housing and Community Affairs. This organization’s programs can help you get some of the lowest interest rates and up to 5% down payment assistance.

Eligibility is based on a few key factors, including your credit score and income and purchase price limits. In some cases, you might be limited in which lender you can work with, so begin your search for a mortgage with the Texas Department of Housing and Community Affairs. list of approved lenders.

Why it pays to shop around for a mortgage lender

You probably won’t buy the first home you see, and you should take the same approach to finding a lender for your mortgage. The interest rate matters, but it’s not the only thing that matters – lenders charge different amounts for origination fees, and they often have different average closing times. In addition, research shows that shopping results in savings: A study by Freddie Mac found that borrowers who got five different rate quotes managed to save an average of almost $ 3,000 over the life of the loan. Simply put, getting more quotes means spending less money.

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