If you are looking to buy a home in the Dallas-Fort Worth area, you are not alone. The DFW metro added an additional 1.3 million residents between 2010 and 2019, according to commercial real estate company Cushman and Wakefield, and the projected growth between 2020 and 2029 looks about the same: another 1.3 million inhabitants.
Whether you’re looking to buy a home, build a home, or refinance a mortgage on a home you already own, now is the time to lock in a low interest rate to make living in Dallas-Fort Worth as affordable as possible. Here are some of the best mortgage lenders to consider.
To determine the best mortgage lenders by city, Bankrate evaluated 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 Bankrate Score and high ratings from borrowers.
Best Mortgage Lenders in Dallas-Fort Worth
- Good if: You want to avoid fees and do everything online
Better.com is one of the top choices for a mortgage in Dallas with no lender fees, the ability to lock in a low interest rate, and enjoy 24/7 customer service (including SMS, calls or emails anytime throughout process). Since obtaining a mortgage can be stressful, this ongoing assistance can provide great peace of mind as the closing date approaches. However, you will need strong credit: Better.com requires a minimum credit score of 620, even for FHA loans.
- No lender fees
- Superior customer service
- Quick pre-approvals and closures
- Higher credit score requirements (at least a 620; higher if you want to make a lower down payment)
- No VA or USDA loans
- Good if: You want to avoid high upfront expenses
If you don’t have the funds for a 20% down payment or closing costs, Homefinity can be a great option. Like other lenders, this online mortgage lender allows you to deposit as little as 3% on a conventional loan, and there are no closing cost options on conventional and FHA loans. This probably means that you build those costs into the loan amount – which means it will cost more over the next 15 or 30 years – but it can make a big difference in your ability to buy now and stop renting.
- Transparent pricing structure
- Possibility to apply in the lender’s mobile application
- Homefinity’s parent company, Fairway Independent Mortgage Company, has an almost five-star rating among more than 3,000 Better Business Bureau customer reviews
- The website has limited functionality and does not display mortgage rates
- Good if: You want a jumbo loan
If you’re looking for a larger loan that exceeds compliant loan limits – $ 548,250 in Dallas and Fort Worth in 2021 – Ally Bank could be a good bet. Online-only banking doesn’t charge lenders any fees and also considers restricted stock units as part of your cash reserves – a differentiator from most other lenders, which can help you get approved without a balance. huge deposit.
- No lender fees
- Competitive rates
- Quick closures (up to 10 days faster than the industry average)
- No FHA, VA or USDA loans
- No Home Equity Lines of Credit (HELOCs) or Home Equity Loans
- Good if: You have a low credit score
Getting a mortgage with less than perfect credit can be a not-so-easy process. However, LowRates.com – a subsidiary of Sun West Mortgage Company – is an exception to the rule. The lender will review your FHA or VA loan application even if your credit score is as low as 500.
- No lender fees
- Also offers FHA, VA and USDA refinancing
- Down payment assistance programs available
- The site experience is not great
Dallas-Fort Worth Local Mortgage Lenders
If you are new to the mortgage process or prefer to talk to someone live and in person, there are many resources available throughout the DFW area. Consider these three lenders with branches nearby.
- Good if: You want to build a new house
Being a member of a credit union comes with the benefits of lower-cost banking products like checking and savings accounts, and the family feeling of joining can also pay off when it’s time to buy. or build a house. The Texas-based Randolph-Brooks Federal Credit Union (RBFCU) offers permanent construction loans, which allows you to avoid paying two rounds of closing costs. This credit union can also be a great option if you are looking for a jumbo loan; it allows down payments as low as 5 percent for that oversized borrowing need.
- Good if: You prefer to work with a financial giant
You don’t have to travel far to find a Chase branch – there are over 240 of them throughout the DFW area. Although Chase is one of the largest banks in the world, it still manages to provide personalized service when it comes to getting a mortgage. The bank topped the rankings in the latest JD Power reports for customer satisfaction with both mortgage origination (getting a loan) and mortgage management (managing payments). ). Also, if you are a bank customer, you may be able to get a discount on your loan.
Bank of Texas
- Good if: You want to borrow against your house
If you already have a mortgage loan in Dallas and want to borrow against your home, Bank of Texas is a solid choice to consider for a home equity loan or HELOC. Also look for limited time offers to save. For example, the bank’s fall 2021 special offer offers a 12-month introductory APR of 2.99% on a HELOC and $ 250 off the withdrawal refinance closing costs. You can schedule appointments to discuss your options at 12 banking centers in the metro area.
What you need to know to get a mortgage in Dallas Fort-Worth
While you can’t change what a mortgage lender is willing to let you borrow, you do have a say in how far that money can go. The DFW area is huge and the housing market is not the same in this vast area. Within the city limits of Dallas, the median selling price was $ 395,000 in August 2021, according to real estate broker Redfin, but in Fort Worth, that median was much lower, at $ 310,000. Cast a wide net when you meet a real estate agent so that you can get the amenities and space you need at a price the lender is willing to offer.
That said, no matter where you go, North Texas is a competitive market – and while this is good news for home sellers, it is not so good news for home buyers. For example, in Fort Worth, the average home sells for about 3% above the list price, according to data from Redfin. The average house goes just as fast: usually under contract within 16 days.
Start the process with a pre-approval letter to signify that you are a serious home buyer who can close the deal, and approach your home search with a list of must-haves and must-haves. Since this is a seller’s market, you might not be able to get everything you want. Bottom line: It doesn’t have to be your dream home on the day you move in, you can make it happen in the future.