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Best Mortgage Lender for First-Time Homebuyers: Quicken Loans
If you're buying your first home in Texas, Quicken Loans may be the best lending option to consider first. This lender's strong customer service and competitive rates on FHA loans make it an informative and cost-effective choice for new homeowners, who of course need both qualities in a lender.
Quicken is a massive presence in Texas and throughout the country, thanks to the success of its online-only lending model. While you might assume that an online lender with no local offices would be hard-pressed to match the level of service a borrower can get from a brick-and-mortar bank, Quicken appears to have no trouble taking care of its customers. According to JD Power, it enjoys one of the highest scores in consumer satisfaction for the mortgage-lending industry.
Quicken's online mortgage program, named Rocket Mortgage, also delivers significant value to aspiring homeowners. Not only is this online platform accessible at any time and place, it also quoted a significant advantage on rates for the newcomer-friendly FHA loan. This government-backed program minimizes down payments, and its mortgages obtained through Quicken kept interest rates at manageable levels. The company also provides conventional alternatives to the FHA loan, which may provide a path to even-lower down payments for qualifying applicants.
Best Mortgage Lender for Refinancing: Bank of America
Bank of America's diverse selection of home loan options make it our top choice for Texan homeowners looking to refinance their mortgages. The main goal of any mortgage refinance is either to lower the loan interest rate or to cash out on existing home equity, and Bank of America's multiple offerings mean that it has loans suitable for either purpose. As a major national brand, this bank has branches throughout the state, while its digital application makes it just as convenient whether you're in El Paso or Texarkana.
If you're already a Bank of America customer, it's possible to receive discounts on your mortgage origination costs depending on the balance of your bank account. Besides this minor benefit, refinancing with your existing bank makes it much easier to manage your loan balance. Keeping your loan and deposit accounts in one place allows you to set up automatic transfers each month, ensuring that you'll never be late on a mortgage payment.
Best Online Mortgage Lender: Guaranteed Rate
If you're interested in a swift origination process, and don't mind financing a home online, Guaranteed Rate is our top recommendation for Texans, thanks to its convenient web interface and breadth of loan options.
Whether you're a current or aspiring homebuyer, it's highly likely that Guaranteed Rate has a relevant mortgage available. Its rates are comparable to the best offers we saw in each category of home loan, from conforming loans to government-backed FHA and VA loans. This makes Guaranteed Rate an equally valid choice regardless of the loans you qualify for, while enhancing its value for people who haven't settled on which mortgage format will best suit their needs.
Best VA Loan Lender: USAA
For military families and veterans living in Texas, the VA loan program offered through USAA represents the most affordable path to owning a home. While many other lenders participate in VA loan origination, USAA, which specializes in serving the military community, has found the greatest success with this loan type, thanks to its affordable loan conditions and its strong record of meeting customer needs.
USAA mortgage products cater specifically to consumers who have ties to the armed forces—and with dozens of military bases such as Fort Hood, Texas is home to more than 1.8 million veterans and active duty personnel. As one of the state's biggest VA lenders, USAA quoted a VA loan estimate that balanced the need for a reasonable monthly payment with the formidable closing costs of a mortgage. Although at least one lender offered a lower interest rate, none were rated higher for consumer satisfaction than USAA.
Best Mortgage Lender for Poor Credit: DHI Mortgage
As the most active originator of FHA loans in Texas, DHI Mortgage represents the best mortgage lender to look for if you're struggling to get approved because of your low credit score. The FHA loan is a government-backed home lending program that enables lenders like DHI to provide mortgage financing to borrowers with credit scores as low as 680. Moreover, another major benefit if you're thinking about your first home purchase is that FHA loans allow down payments as small as 3.5%.
While many Texas mortgage lenders participate in the FHA program, DHI is both the most popular option and one of the best when it comes to customer satisfaction. We looked at government data from the Consumer Financial Protection Bureau (CFPB) and discovered that since 2013, DHI has received just 45 recorded complaints from consumers—while originating over 13,000 individual loans in the same period. Finally, DHI's website makes it very easy to look up individual loan officers in your immediate area, offering access to a degree of local expertise that most online lenders can't match.
The Best Mortgage Rates Among Texas Lenders
Homebuyers in the Lone Star State can choose between some of the lowest rates offered by the in-state mortgage lenders above. Though rates change on a weekly basis, the lowest rate is typically available from multiple lenders competing with one another. In order to choose from among lenders offering the same rate, you should think about the several other important factors that affect a long-term mortgage. These include less measurable aspects such as the quality of the lender's customer service and the convenience of its origination process. We evaluated dozens of Texas mortgage companies on these terms to find out which ones represent the best deal for a variety of different scenarios.
How We Chose the Best Mortgage Lenders in Texas
We chose the best mortgage lenders in Texas based on a number of different factors. While there are far too many home loan providers in the Lone Star State to review every single company on an individual basis, we began with a filtered list of candidates based on the most active and successful lenders. We then rated those lenders according to the following broad criteria:
- Cost: Closing costs and interest rates
- Servicing: Transparency, customer ratings and complaint data
- Options: Loan types, features and lender flexibility
Interest rate is easily the most popular metric by which consumers evaluate mortgage lenders and their loan products, but rate is only one part of the picture. Because mortgages tend to last for years and involve larger sums of money than any other purchase you'll ever make, it's critical to look for more in a home loan company than simply the cheapest deal. Our analysis of Texas's top lenders favored those that demonstrated a record of competence in meeting customer needs both during the application process and when handling monthly payments.
Most Popular Home Loan Companies in Texas
In our search for Texas's best mortgage lenders, we began with a list of the largest home loan companies active in the state. These lenders represent the most easily accessible financing options for most Texans, but not all of them featured in our coverage of the best options.
Top 5 Texas Residential Mortgage Lenders, 2013-2019
|Company||Mortgage Originations||Average Mortgage Amount|
|Bank of America||100,525||$840,375|
If you find that our list of lenders above doesn't include anything that makes sense for your situation, we recommend continuing your research with these popular options. However, it's important to consider these companies in light of the qualities that we analyzed: cost, reliability, and the availability of appropriate loan products.
Mortgage Brokers Near Me in Texas
If you're still having trouble finding a lender that makes sense for you, consider looking into mortgage brokers in your area. A mortgage broker is a licensed professional that helps borrowers find lender offers in exchange for a commission. Brokers will ask for rates from multiple lenders in order to find your best offer, and they also help you with much of the paperwork that you'd normally have to manage yourself. If you'd prefer to pay for the expertise of a local mortgage broker, try some of the companies below that are in your area.
|Mortgage Broker||Address||Phone Number|
|First Imperial Mortgage||(713) 703-2043|
|Cross Country Mortgage||(281) 841-1723|
|Dominion Mortgage Corp.||(972) 385-2166|
|NRL Mortgage||(214) 235-4332|
|Crown Lending||(210) 828-3384|
|Vista Lending||(512) 358-6262|
|The Dinham Companies||(972) 758-1151|
|Home Team Mortgage Company||(972) 443-1444|
|Rm Mortgage||(915) 591-5700|
|First United Mortgage Group||(281) 367-0188|