When it comes to buying or refinancing in The Lone Star State, every penny counts.
There can be a significant swing between mortgage lenders depending on which you choose. Two similarly qualified borrowers may see a difference of 0.5% between mortgage rates with different lenders, according to the Consumer Financial Protections Bureau (CFPB) — a difference that can add up thousands of dollars over the life of a loan.
Saving a fraction of a percent can add up, especially with home prices so high. Nationally, the average single-family home price rose at a rate of 14.6% year-over-year, according to the latest quarterly report from the National Association of Realtors. The Texas-metro areas of Austin-Round Rock and Sherman-Denison saw yearly price gains of over 25%.
That’s why it’s important to shop and compare a few lenders before committing to make sure you’re getting the best deal possible — and it doesn’t have to be a local Texas lender, unless you want it to be.
Outside of getting the best price, it’s equally important to find a lender with transparent pricing, online conveniences, accessibility to most borrowers, an extensive product offering, and a reputable history with customer satisfaction.
To help you navigate the process, NextAdvisor reviewed 51 different lenders and scored each one on categories including transparency, accessibility, online convenience, loan product variety, and customer satisfaction.
We then narrowed down the list to the 10 best mortgage lenders available to Texas residents.
As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information about our scoring methodology, click here.
Table of Contents
- The 10 Best Mortgage Lenders In Texas
- Honorable Mention
- What Are Today’s Mortgage Rates in Texas?
- How to Find the Best Mortgage Lender for Your Situation
- Always Shop and Compare Mortgage Lenders
- National Lender Vs. Local Texas Lender
- How We Chose the Best Texas Mortgage Lenders
- Frequently Asked Questions (FAQ)
The 10 Best Mortgage Lenders In Texas
- Guaranteed Rate’s Standout Feature::Guaranteed Rate says it can provide a preapproval letter in around 15 minutes, and the company goal is to be clear to close within 10 days.
- More than 400 branch locations nationwide
- Operates in all 50 states and Washington, D.C.
- Fully online mortgage application process
- Detailed advertised rates for many of its loan products
- Online preapproval 15 minutes
- Fast closings
- Lenders fees not available online
- Some loan types are brokered off to other lenders
Guaranteed Rate is a Chicago-headquartered firm with a strong online presence and 400 branch locations across the country. We ranked the company a top lender because of its top-of-the-line digital experience, helpful consumer tools, solid customer service, and variety of loan products, including all three government loans.
Guaranteed rate received fewer consumer complaints compared to most other lenders we reviewed. The company logged less than one complaint per 1,000 loans originated with the Consumer Financial Protection Bureau (CFPB) consumer complaint database, the agency responsible for collecting, monitoring, and responding to U.S. consumer complaints about financial services and products.
- Navy Federal Credit Union Standout Feature:Offers a unique relock rate option: You can lock in your interest rate and relock it twice if rates improve before closing.
- Specializes in providing services and advice to the military community
- Offers no-down-payment mortgages
- Has flexible credit requirements
- Doesn’t charge private mortgage insurance
- You can lock in your interest rate and relock it twice if rates improve
- Membership is limited to service members, veterans, and certain government contractors
- Doesn’t offer FHA loans and USDA loans
- You’ll have to request a customized rate quote
Headquartered in Vienna, Virginia, Navy Federal Credit Union serves all 50 states and has 344 branches worldwide. Navy Federal Credit Union was a high-scoring lender by NextAdvisor because of its price transparency, streamlined online application process, and loan product variety. It has a slightly above average complaint ratio of 2.8 complaints per 1,000 loans with the CFPB. But this lender offers no-down payment and flexible credit requirements on most mortgage products to qualified military service members and their families.
- Rocket Mortgage’s Standout Feature:Despite its magnitude, the company has lower-than-average consumer complaints registered on the CFPB consumer complaint database.
- Quick and easy preapproval process
- Entirely remote application and approval process
- Lends in 50 states
- Wide range of loan options
- Strong customer service reputation
- No physical locations
- You’ll need to call or chat with a representative for some loan information
- No construction loans or renovation loans
- Advertised rates may include discount points, which increase your upfront costs
- Difficult to find mortgage menu of loans
Rocket mortgage is the online lender for Quicken Loans and is one of the largest mortgage lenders in the U.S. We ranked the Detroit-based company as one of the best mortgage lenders because of its simple online application process, low level of consumer complaints, the transparency and accessibility of its rates and fees, and the company’s wide offering of mortgage loan products.
Rocket Mortgage stands out for the company’s high level of customer satisfaction. Rocket Mortgage originated over one million loans in 2020, making it the largest lender we reviewed by total volume. We found 0.48 complaints per 1,000 loans — or less than half a complaint per 1,000 loans occurred. This figure is very low compared to the average complaint ratio of 2 complaints per 1,000 loans among other lenders we reviewed.
- Veterans United Standout Feature:Veterans United provides a wealth of information on its website regarding what to expect through the loan process, closing, how to prepare for homeownership, home loans basics, credit, and underwriting.
- Mortgage loans available in all 50 states
- Educational content available through the company’s website
- Highly experienced in VA loans as a top three VA loan originator for five consecutive years
- Low number of consumer complaints with the CFPB
- Offers a number of loan programs including VA, jumbo, conventional, FHA, and USDA
- Full online application process
- Limited online rate information; must call to see other rate options such as discount points
- Difficult to find information regarding non-VA loan options
- Does not offer home equity loans or lines of credit
Veterans United Home Loans, headquartered in Missouri, is a mortgage lender that specializes in VA home loans in all 50 states. Veterans United is incredibly active in the VA loan space. The U.S. the Department of Veterans Affairs has listed Veterans United in the top three among VA loan lenders by volume for five consecutive years. While the company focuses heavily on VA loans, it also offers conventional, jumbo, FHA, and USDA loans.
Veterans United has a fully digitized and easy online application process. Compared to other lenders we’ve reviewed, the company had one of the lowest complaint ratios logged with the CFPB: less than half of one complaint per 1,000 loans originated.
- NASB’s Standout Feature:NASB has several programs that can help non-traditional borrowers get a home such as the self-employed and those with a less-than-prefect credit history.
- Lends in 50 states
- Has unique loans products for borrowers with credit issues or are self-employed
- Advertises daily interest rates for purchase and refinance loans
- Can get lower rate if rate drops during 90-day rate lock period
- Streamlined online application process
- Can get customized rate quote without hard credit check
- 12 in-person branches, but only in Missouri
- Does not offer USDA loans, construction loans, renovation loans, and home equity products
- Higher credit score standards on FHA and VA loans
Headquartered in Kansas City, Missouri, North American Savings Bank (NASB) is a full-service bank that lends in all 50 states. North American Savings Bank has a more extensive mortgage menu than most, including options for veterans, first-time homebuyers, self-employed people, and borrowers with less-than-perfect credit histories. That’s because the bank offers VA loans, FHA loans, and mortgages for people who don’t fit conforming loan standards. NASB also has a streamlined online application process with transparent pricing for browsing borrowers.
- Truist Bank’s Standout Feature:There is an allure of convenience to also have your mortgage through the same institution you bank with
- Offers a full lineup of the major mortgage programs
- Advertises sample mortgage rates on both the SunTrust and BB&T websites
- Mortgages available in 47 states and Washington, D.C.
- Can submit an application online, by phone, or in person
- Gathering mortgage product information is slightly confusing because of the merger
- Mortgages not available in Hawaii, Alaska, or Arizona
Truist Bank, now merged with Suntrust and BB&T under its name, has an extensive footprint across the U.S. through its thousands of brick-and-mortar branches and online presence. Along with the company’s solid menu of mortgage products, easy-to-use online application process, transparency of rate and fee information, and average number of complaints compared to other reviewed lenders, the brand’s website is easy to navigate with several useful resources to help with the borrowing process, such as calculators, videos, and sample mortgages.
Truist offers a comprehensive menu of online or in-person banking accounts such as checking, savings, money market, and CDs. If you are in the market for a bank, looking to switch banks, or already have a Truist account, there is an allure of convenience to also have your mortgage through the same institution. Some lending institutions also give incentives or discounts to existing account holders.
- Sebonic Financial’s Standout Feature:Sebonic’s proprietary borrowing platform, Octane. We found Octane to be one of the best online application processes
- Offers a streamlined digital application and closing process
- Funds conventional loans, jumbo loans, and all three government-backed loan programs
- Available in all 50 states and Washington, D.C.
- Interest-only jumbo ARMs available
- Mortgage rates aren’t published on the lender’s website
- Doesn’t offer home equity loans, HELOCs, renovation loans, reverse mortgages, or construction loans
- In-person branches only available in Charlotte, North Carolina; Gaithersburg, Maryland; and Las Vegas, Nevada
Sebonic Financial is the mortgage lender division of North Carolina-headquartered Cardinal Financial. Sebonic Financial scored well with NextAdvisor because of the company’s high-end digital borrowing experience, full mortgage product lineup which is available in all 50 states, and the lender’s history of below-average customer complaints with the CFPB. Based on 2020 data, Sebonic has less than one complaint per 1,000 loans originated in the same year.
Although Sebonic’s mortgage rates and fees are not listed on the company website, the online system, Octane, makes it easy to access a quote without a credit check or drawn-out process. With Octane, borrowers can get a fast rate quote, start an application, upload documents, and sign closing documents, with real-time updates along the way. We found Octane to be one of the best online application processes compared to other lenders we’ve reviewed. It’s easy-to-use, high-tech, and we appreciate the ability to have a full-online digital experience with the option to speak to loan officers.
- Pennymac’s Standout Feature:Very low complaint history and best overall online user experience with price transparency and user-friendly application process
- Advertises daily interest rates for purchases and refinances
- Customized rate quote available online
- User-friendly online experience
- Available in 49 states (not available in New York)
- Maintains 16 branch locations spread across nine states
- Doesn’t offer home equity products, jumbo mortgages, reverse mortgages, construction loans, and renovation loans
- Doesn’t share information about minimum qualification requirements on its website
Pennymac Loan Services isn’t a well-known name. But the California-based mortgage lender stands out for its convenient online application process, ability to get a rate quote without a credit check, transparency of rates and fees, and low frequency of consumer complaints with the CFPB. In 2020, the CFPB reported less than 0.30 complaints per 1,000 loans. Pennymac offers most major mortgage products and all three-government loans in 49 states, with 16 brick-and-mortar branch locations.
The brand had one of the lowest complaint ratios among lenders we reviewed, but the more noticeable standout feature is the overall online experience. At NextAdvisor, we value price transparency and accessibility. Pennymac met this expectation with daily rate and fee updates and customizable rate quotes on its user-friendly webpage.
- Watermark Home Loan’s Standout Feature:The “Non-QM loan,” or “Non-Qualified Mortgage” for the non-traditional borrowers, such as the self-employed, a history of bankruptcy, or with less attractive debt-to-income ratios.
- Solid mortgage menu of products including all three government loans
- Unique loan product for the non-traditional self-employed borrower
- Calculators and tools very helpful
- Easy digital application process
- Low level of consumer complaints
- Only originates mortgages in 38 states (more states coming soon)
- A breakdown of lender closing fees is not provided with rate quote
Watermark Home Loans based out of Irvine, CA, and currently licensed in 38 states. The company is named one of NextAdvisor’s best mortgage lenders of 2022 because of its streamlined online application process, extensive loan product menu including standard conventional, jumbo, and refinance loans, but also all three government-backed loans (FHA, VA, and USDA). Another stand out product by Watermark is its “non-qualified mortgage” meant to serve borrowers with unique income criteria, such as the self-employed.
Watermark has a fully digital online application process with document uploading capabilities. The company also offers an online notary service so you can opt to complete closing paperwork all online versus in person.
Borrowers can receive a customized rate quote by filling out a form online with basic information and then will get an email with a few different quote options to review that lays out clearly discount points, lender credits, or closing costs options. Watermark Home Loans advertises national daily rate averages along with data indicators of how much each loan type’s rate has moved up or down in the last 30 days.
Watermark has a lower-than-average number of consumer complaints: Less than one complaint per 1,000 originated loans in 2020, according to the CFPB’s consumer complaint database.
- LenderFi’s Standout Feature:Out side of third-party closing fees, LenderFi advertises no additional lender fees as part of the closing costs.
- Rate quotes can be obtained online without a credit check
- Quick and easy to reach a loan representative by phone
- Very friendly customer service
- Does not charge lender fees
- Super transparent pricing
- Short list of loan types: No VA, USDA, or home equity loans
- Loans are not offered in all 50 states
- Company’s website has minimal educational content
Headquartered in Calabasas, CA, LenderFi is named one of NextAdvisor’s best lenders because of the company’s easy-to-use online application process. LenderFi provides a unique feature to its rate quotes: A full, transparent, line-by-line breakdown of all rates and fees before even getting a credit check. Discount points are clearly advertised with how they affect the APR and monthly payment. The quote even estimates homeowners insurance, mortgage insurance (if applicable), property tax costs, and all third-party closing fees.
The company advertises that it does not charge lender fees as part of the closing costs. Third-party closing fees, such as appraisal, title insurance, and inspection costs still apply. But LenderFi says no additional lender costs are passed to the borrowers. Instead, all lender-related costs are rolled into the quoted rate and APR.
- Costco Mortgage Program Standout Feature:Costco members have access to a network of lenders in one marketplace, one credit check, and potential discounts and incentives for borrowing through this platform.
- Costco members get discounts on lender fees
- Applicants can compare loans from several lenders
- The mortgage application process is quick and automated
- Fee discounts are only available to Costco members
- Not a direct lender, but a marketplace program
The Costco mortgage program does not originate mortgages, so it was not included in the list of best mortgage lenders. However, the useful marketplace is worth an honorable mention. Costco members have access to a network of participating mortgage lenders offering discounts and incentives for borrowing through this channel. Through the Costco mortgage marketplace website, you can fill out a universal application, compare loan offers, and cash-in on discounts or lender fees if you choose a lender through this program. The marketplace platform is easy to navigate with transparent pricing and terms. You can get a rate quote online in minutes and will only be contacted by the lender with your expressed permission.
What Are Today’s Mortgage Rates in Texas?
For Tuesday, September 27, 2022, here are the current mortgage rates in Texas. The average 30-year fixed mortgage rate is 6.720%. The average 30-year fixed mortgage refinance rate is 6.750%. Today, the average 15-year fixed mortgage rate is 5.810%.
This information is from Bankrate’s latest survey of the nation’s largest mortgage lenders.
Current Mortgage Rates in Texas
How to Find the Best Mortgage Lender for Your Situation
When NextAdvisor evaluated the best mortgage lenders for Texas, we looked at criteria such as transparency, accessibility, online convenience, loan product variety, and customer satisfaction.
Outside of this list of criteria, narrowing down your choice comes down to what is best for you and your personal circumstances. One lender could be a better fit than another, depending on your goals and needs as a borrower. A first-time homebuyer, for example, with down payment challenges may want to go with a lender that offers down payment assistance programs. Another borrower may have a low credit score and may need a lender with a more flexible credit threshold.
Here is what you can use to evaluate your decision:
Loan Product Availability
The first step in a lender search is to consider what type of mortgage you need. For example, USDA and VA loans offer 100% financing with no down payment required. If you have blemishes on your credit report, like a bankruptcy, then an FHA loan is likely to be easier to qualify for than conventional loans. You’ll need to find a lender that offers these types of loans if you want to take advantage of any of these government-backed loan programs.
Loan Officer Experience
Talk with a loan officer to ensure that they have experience in the industry and have dealt with individuals in similar situations to your own. If you’re applying for a VA loan or FHA loan, for example, working with a loan officer who’s familiar with the ins and outs of those types of mortgages is even more important.
First Time Homebuying Assistance Programs in Texas
The Texas State Affordable Housing Corporation (TSAHC) provides up to 5% in down payment and closing cost assistance to qualified borrowers. To be eligible, you must meet the property value and income limits, as well as have a minimum credit score requirement of 620.
The programs are:
- My First Texas Home – First-time homeowners and veterans.
- My Choice Texas Home – Not required to be a first-time buyer.
- Homes Sweet Texas Home Loan Program – Not required to be a first-time buyer.
- Homes for Texas Heroes Loan Program – Available for qualified professions: teachers, firefighters, police officers, emergency medical services personnel, and veterans.
- You can find participating lenders for the above programs here and here.
- Visit this page for first-time homebuyer programs by state.
There are also a wide range of city and county-specific programs that offer down payment or closing cost assistance. When vetting lenders as a first-time homebuyer, make sure to ask what first-time homebuyer programs they participate with.
Always Shop and Compare Mortgage Lenders
Each mortgage company will evaluate your financial situation differently. That’s why it’s important to compare offers from a variety of lenders. Financial experts recommend comparing at least two to three different quotes to secure the best rate, terms and fees.
Make sure to compare all the fees associated with the cost of closing. Two lenders can advertise the same mortgage rate but charge very different closing fees. A low rate with high closing costs can eat away at the savings you thought the low rate provided.
Using this Home Loan Comparison Calculator, you can enter in all the variables of each offer and see a side-by-side comparison. When entering each loan, make sure to add the closing costs and other upfront fees. Then you can see the actual costs for each loan over time.
Home loan comparison calculator
Compare your payment options side-by-side to see which is right for you and your financial situation.
Find the mortgage that’s best for you by comparing the cost of multiple loans over time.
National Lender Vs. Local Texas Lender
A local Texas lender versus a national lender has its pros and cons for either choice. The decision will boil down to personal preference. A local lender will more likely have local branches where you will have an in-person experience and personal touch. A national lender that conducts most business online can offer ease, speed, and convenience using digital tools that some prefer. Sometimes online mortgage lenders can offer lower rates and fees since, without a physical location, they operate with less overhead.
Pros and Cons of Choosing an National Online Lender
Potential for lower rates and fees
Less time-consuming process
Less overhead doesn’t guarantee a better deal
No face to face interaction
May be more difficult to get in touch with questions
How We Chose the Best Texas Mortgage Lenders
To find the best mortgage lenders in Texas, we first looked at all the mortgage lenders NextAdvisor has reviewed so far. We then eliminated any lender that is not available to Texas residents.
To score mortgage lenders, we’ve developed a framework using a weighted average score between 0 and 5, with more weight awarded to the criteria we determined to be the most important.
Our list doesn’t take into account key financial factors like mortgage rates, APRs, and fees, because those depend on market conditions and your individual creditworthiness. Instead of focusing on those numbers, it’s best to first determine the qualities you want in a lender and how to find the best mortgage rates. Then you’ll be prepared to find the best lender for you.
The factors we used to evaluate the best mortgage lenders:
- Online Convenience: A lender is scored 1 through 5 based on the company’s online application experience. A 5 is awarded if the company’s mortgage application can be completed fully online with a streamlined process, including uploading documents and a customized rate quote. A lower score is awarded if additional phone calls are needed to process an application or for a poor online user experience.
- Transparency: Lenders are scored 0 through 5 based on the accessibility and transparency of mortgage rates, lender fees, and credit check requirements for rates and/or fees. A 5 is awarded if the lender advertises rates and fees on its websites and doesn’t require a hard credit check to get rates and/or fees. Conversely, a lower score is awarded when consumers cannot easily access rate and fee information and/or must go through a hard credit check to access them.
- Nationwide Availability: Lenders are scored 1 through 5 based on the company’s geographical footprint. A lender can score a 5 if it operates in all 50 U.S. States. Lenders were eliminated from this list if they are not licensed to lend in the state of Texas.
- Loan Product Variety: Lenders are scored 1 through 5 based on their loan product menu and variety of products offered. A high score of 5 is given if most or all mortgage products are available, with a lower score awarded for a limited mortgage menu.
- Customer Satisfaction: To measure customer satisfaction, we reviewed the number of complaints filed against each lender with the Consumer Financial Protection Bureau in 2020. We divided the total consumer complaints with the total number of loans originated over the same time period to get a complaint ratio per 1,000 loans originated. We sourced the total loans originated using publicly accessible data provided under the Home Mortgage Disclosure Act and regulated by the Federal Financial Institutions Examination Council (FFIEC).
Frequently Asked Questions (FAQ):
Who is the best mortgage lender in Texas?
It depends on personal preference. If you are looking for an in-person lending experience, then a local lender with a brick-and-mortar location may be best for you. If you prefer an online digital experience, then a local lender may not matter to you. A mortgage lender may be licensed in Texas but may not have any branches there or have headquarters in another state.