Finding the best Texas mortgage lender involves comparing rates, fees, and service. Interest rates vary based on credit and loan type. Hidden fees impact closing costs; compare Texas mortgage lenders side by side to avoid surprises. Online lenders offer speed, while traditional banks provide personalized service. Credit scores above 740 yield optimal rates.
How to Compare Texas Mortgage Lenders
There’s a reason some lenders close deals fast and others make you wait forever. It’s not just about rates—it’s about the full package.
1. Interest Rates: The Headline Number
Everyone chases low rates. But here’s what many miss:
- Advertised rates aren’t always what you get. Your credit score, loan type, and down payment all change the final number.
- Adjustable vs. Fixed: A 30-year fixed protects you long-term. A 5/1 ARM might start lower but can shoot up later.
Always ask for a rate lock if you want to secure today’s rate.
2. Fees & Closing Costs: The Fine Print
Some lenders hit you with hidden fees right at closing:
- Origination fees
- Processing fees
- Underwriting fees
Compare lender estimates side by side to avoid surprises.
3. Speed & Customer Service: Will They Actually Help?
- Getting a mortgage is stressful enough. If your lender takes weeks to respond, that’s a red flag.
- Some lenders are great at getting you preapproved fast, but once you’re in the process, communication disappears.
- Look at reviews and ask around—real estate investors know which lenders keep their word.
The Top Texas Mortgage Lenders—Side by Side
To save time, here’s a quick look at some of the best options.
| Lender | Best For | Starting Interest Rate | Avg Closing Time |
|---|---|---|---|
| Wells Fargo | Established borrowers with high credit | 6.50% | 30-45 days |
| Rocket Mortgage | Fast online approvals | 6.75% | 20-30 days |
| Better.com | Low fees, no commissions | 6.60% | 25-35 days |
| Credit Unions | Members-only lower rates | 6.40% | 30-40 days |
These rates change often, so always get real-time quotes.
Which Lender is Right for You?
Different buyers need different things.
- Buying fast? Rocket Mortgage might be your best bet.
- Hate fees? Better.com minimizes them.
- High credit score? Big banks could offer better deals.
- Military or member of a credit union? Those lenders can slash your rate.
Real estate investors often go cash, but for those using financing, the lender you pick will impact your cash flow long-term. Always run the numbers.
FAQs
What credit score do I need for the best Texas mortgage rates?
Above 740 usually gets the lowest rates. Below 620? Expect higher interest and stricter loan terms.
Do Texas mortgage lenders have different laws than other states?
Texas has unique home equity laws, but standard mortgage rates and loan products are similar across states.
How long does it take to close on a mortgage in Texas?
Most loans close in 30-45 days, but online lenders can sometimes cut that to 20-25 days.
Are online lenders better than traditional banks?
If you want speed and lower fees, online lenders win. But some buyers need the in-person support of a local lender.
Conclusion
selecting the right Texas mortgage lender requires a comprehensive approach beyond just advertised rates. Thoroughly compare lenders based on interest rates, hidden fees, and customer service. Consider your specific needs—speed, low fees, or personalized support—and choose a lender that aligns with your financial goals. Remember to factor in your credit score, as it significantly impacts your loan terms. Ultimately, diligent research and comparison will lead to a smoother and more cost-effective home buying experience.