Texas is truly a place like no other. It’s the 2nd largest state in the U.S. in terms of area and each region has its own vibe and personality. Whether you like urban living, lounging on the beach or prefer a country lifestyle, you can find a home in the Lone Star State. Here’s your guide to the best mortgage lenders in Texas so you get a home just where you want it. Don’t start with a mortgage broker when you can do your own research and start the homebuying process today.
Best Mortgage Lenders in Texas
The 5 Best Mortgage Companies in Texas
Ready to find a mortgage? You have lots of options in the Lone Star State. Here are the 6 best mortgage companies in Texas, based on our extensive research of these financial institutions. Remember, mortgage interest rates will vary depending on your situation, and loan options, origination fees and the type of loan may shift depending on your needs.
1. Best for Bank Statement Loans: Angel Oak Mortgage Solutions
Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio Non-QM mortgage loans. Angel Oak is licensed in 45 states and offers competitive mortgage rates and quick closing times.
Angel Oak Mortgage Solutions offers a wide range of mortgage solutions for various needs. Whether you are looking to purchase a home, cash-out on your current property, or refinance at a different rate, they have options for you.
With loan amounts available up to $3.5 million, they can support you in financing properties of different values. They cater to primary residences, second homes, and investment properties, and accommodate various types of properties such as single-family homes, townhomes, and condos.
As an added convenience, they offer options for self-employed borrowers and real estate investors who may not have tax returns readily available. They also provide opportunities for those with 1099 income and offer government loan products like FHA, USDA, and VA loans.
With competitive rates on conventional purchase and refinance, Angel Oak Mortgage Solutions ensures that you have options to suit your financial goals.
- Considers unique borrower situations
- Quick loan approval process
- Offers competitive interest rates
- Stricter qualification requirements
- Higher interest rates and fees
2. Best for Online Loans: Rocket Mortgage®
Rocket Mortgage® keeps things simple. The website is easy to navigate. It outlines the mortgage process clearly and you can complete the whole process online.
It offers an extensive library of educational materials, and it has won several awards for its customer service. Rocket Mortgage® offers mortgages for refinancing, conventional and proprietary mortgages and FHA, VA and USDA mortgages.
- Apply online through their website
- Faster loan processing times
- Variety of mortgage options
- Lack of personal interaction
- Inability to negotiate terms
3. Best for Online: guaranteed Rate
guaranteed Rate offers a straightforward online mortgage experience. You can complete the whole process without speaking to a single person if that’s your preference.
guaranteed Rate boasts high customer ratings. Its rates are posted online so you can compare it with other Texas lenders. guaranteed Rate offers extensive educational resources and conventional mortgages, jumbo loans, FHA loans and VA loans.
- Competitive interest rates for home loans
- Streamlined application process and quick approval times
- Wide range of loan products
Operates mainly as an online mortgage lender
4. Best for Service Members: Veterans United
If you’ve logged some time in the military, Veterans United’s loans will likely be the best deal. Unlike other veteran-marketed loan programs, Veterans United only accepts active duty and veteran military members.
In addition to no-down-payment loans, you’ll also eliminate the private mortgage insurance you’ll have to pay with other mortgages.
Veterans United is also more forgiving of lower credit scores. Interest rates are lower than average.
- Streamlined loan application process
- Competitive interest rates and loan terms
- Excellent customer service
- Funding fees
- Limited physical locations
5. Best for Self-Employed: CrossCountry Mortgage
CrossCountry Mortgage makes it easy for all types of home buyers to get approved for a mortgage. Their flexible requirements can help you get financing, with no employment or income verification and no minimum DTI. CrossCountry Mortgage offers traditional loan terms, as well as more flexible home payment plans with their 40-year loan program.
It's also easier to get approved if you're self-employed. Tax returns are not required and you'll only need one year of self-employment income history and a minimum credit score of 580. CrossCountry Mortgage can also help you get approved on assets alone, like your bank statements, stocks and bonds, or retirement accounts.
- Long-term loan programs
- Low minimum credit score
- No minimum DTI
- Service not available in all 50 states
Browse Best Mortgage Lenders by City
A mortgage type refers to whether or not a government agency insures your mortgage. Your mortgage term is the maximum amount of time your mortgage will last. Remember, your monthly mortgage payment depends on the property taxes, mortgage insurance, homeowners insurance and other costs you’ll incur.
Types of Mortgages
Here are some common mortgage types and terms for potential homebuyers. Remember, loan approval depends on a range of things, including the purchase price. At the same time, your monthly income is just one part of the process because these loans can make it easier or harder to get approved depending on your credit score and other factors.
A conventional mortgage is a mortgage that isn’t backed by the federal government. Conventional mortgages usually require higher credit scores than a government-backed mortgage. Planning to make a down payment of less than 20%? You may need to pay for mortgage insurance as well. Mortgage insurance is insurance that protects a lender if a borrower stops paying on a mortgage.
Private lenders offer FHA mortgages. The Federal Housing Administration sets the rules for these mortgages and helps insure them. These mortgages have relatively low credit score requirements and you may be able to make a down payment as low as 3.5% if you qualify. You must pay for mortgage insurance if you get an FHA loan.
VA mortgages help current service members, veterans and certain spouses purchase homes. The Department of Veterans Affairs oversees these mortgages and backs them, but private lenders offer these loans. VA mortgages typically have no down payment requirement and no mortgage insurance requirement.
30-Year Fixed Mortgages
A 30-year fixed-rate mortgage lasts for 30 years. You can speed up the process if you make extra payments. The fixed rate refers to your mortgage rate, which stays the same for the life of your mortgage. Your monthly payment stays the same, too.
15-Year Fixed Mortgages
A 15-year fixed-rate mortgage lasts for 15 years. This means that your monthly payments are higher than they would be for a 30-year fixed-rate mortgage. You pay less in interest over the life of the mortgage.
An ARM is an adjustable-rate mortgage. As the name indicates, ARMs have an interest rate that changes. Lenders change the rate in response to economic conditions. These mortgages usually start at a fixed rate. A 5/1 ARM has a 5-year period with a fixed rate. After that, lenders can change your interest rate once per year. This means that your monthly payment may go up or down as well.
Everyone’s situation is different. The mortgage that’s right for one borrower might not be right for another. Get multiple quotes, review them carefully and go with the mortgage that’s right for you. There are different upfront costs and mortgage preapproval rules depending on the product and the lender. You can use mortgage calculators to learn which loan is best for you, but you also want to consider average mortgage rates and other related costs as they can vary.
Use a mortgage calculator or affordability calculator to factor in things like property taxes, private mortgage insurance, homeowners insurance, etc.
Which Mortgage Lender is Best for You?
As you decide on the right type of mortgage, you also need to decide on a lender. Here are a few things to consider as you evaluate potential lenders:
Is this a lender your family or friends have worked with? What kind of experiences have they had? What kind of reviews does the lender have? Does it have complaints with the Better Business Bureau? How were those complaints addressed? Look for a lender with a solid reputation. You should have your own level of risk tolerance. Remember that mortgage debt is safer with a more solid lender.
How does the lender respond to your quote request? Did the lender ask questions to get to know you and what you were looking for? Do you feel valued, or do you feel like just another customer? Your mortgage is one of the most significant financial transactions you will ever make. You deserve to feel valued during every step of the process.
Does the lender offer the type of mortgage you’re interested in? If you’re a first time home buyer, does it have options that are geared toward you? If you’re refinancing, what options does it have? Take a look at the options the lender has and see whether it will be able to meet your needs.
Do you want to complete the application process online? Do you want to stay connected with a mobile app? Look for lenders who have the technology options that can fit your lifestyle.
A quality mortgage lender offers programs to its customers often, allowing you to reduce your rates or payments. There are several hardship programs that could help you, programs that will lower your rates and even programs that will help you catch up without spending more money on extra fees.
Keep looking if you get a sense that a lender isn’t right for you. There are plenty of lenders out there and it’s worth it to find the perfect fit for you.
Lender Credit Score Minimums in Texas
Lenders consider how you’ve handled credit in the past when they approve you for a mortgage. Your credit history also impacts your interest rate. One measurement lenders look at is your credit score. A computer model generates your credit score. The model takes into account:
- Your debt payment history
- How long you’ve had your accounts
- Whether you’ve had accounts in collections
- The percentage of credit you’re using
- Whether you’ve filed for bankruptcy
The computer model generates a 3-digit number between 300-850. The higher your credit score, the better. Here are several Texas lender minimum credit scores:
Current Mortgage Rates in Texas
Several factors impact your mortgage rate. These include your credit history, the size of your down payment and your mortgage amount. Rates change daily and lenders adjust rates up or down to reflect changes in the economy and in the housing market. We update mortgage rates frequently to reflect the most relevant information.
Average Days to Close on a Loan
Closing signals the end of your mortgage journey. Your lender has approved you for your mortgage, and all that’s left is your final paperwork. You, your real estate agent and your lender decide on a closing date. Your closing paperwork must be ready at least 3 days before that date. Look for any changes from your original loan estimate. If anything is unexpected or confusing, contact your lender.
At your closing meeting, you’ll sign all the documents and pay your closing costs and down payment. Lenders take time to review your documents and make a decision about your mortgage. Here are the average closing times for several Texas lenders:
Buying Your Texas Home
Are you worried about coming up with a down payment? Consider one of Texas’ home buyer programs. The Home for Texas Heroes loan program offers low interest rates and down payment assistance for teachers, firefighters, police officers and veterans. The Home Sweet Texas Home program offers assistance to home buyers with low or moderate incomes.
The Texas Department of Housing and Community Affairs offers a first time home buyer program. These are just a few of the programs Texas offers to help you buy a home. Look for both state and local programs to help you purchase or refinance your home.
Frequently Asked Questions
How does pre-approval work?
You get pre-approved by your mortgage lender up to a certain amount, allowing you to present sellers or agents with a documents that shows you can afford the home when putting in an offer.
How much should you save for a down payment?
Conventional loans traditionally require a 10% or 20% down payment. FHA down payments can go as low as 3.5% and USDA loans require no down payment.
Can I refinance my mortgage in Texas?
Yes, you can refinance your mortgage in Texas. By refinancing, you have the opportunity to potentially lower your interest rate, reduce monthly payments, or change loan terms, depending on your specific financial situation and goals.
Get Ready for Take Off
Rocket Mortgage® is an online mortgage experience developed by the firm formerly known as Quicken Loans®, America’s largest mortgage lender. Rocket Mortgage® makes it easy to get a mortgage — you just tell the company about yourself, your home, your finances and Rocket Mortgage® gives you real interest rates and numbers. You can use Rocket Mortgage® to get approved, ask questions about your mortgage, manage your payments and more.
You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.