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9 best mortgage lenders in Texas

Looking to buy a home in Texas? Here are some of the best mortgage lenders in the Lone Star State.

From Houston to El Paso and Amarillo to San Antonio, Texas is home to an enormous amount of real estate. If you’re thinking about setting down roots in the Panhandle, the Gulf Coast or anywhere in between, the best mortgage lenders in Texas can help.

What are the best mortgage lenders in Texas?

How we picked the best lenders

These nine lenders were selected based on several factors, including fees, loan amounts, interest rates and eligibility requirements. We also considered reviews from sites such as Trustpilot and the Better Business Bureau (BBB). Learn more about Finder’s rating methodology.

Best for down-payment and closing cost assistance

LoanDepot

Finder rating 3 / 5 ★★★★★

In addition to the My First Texas Home program, the TDHCA also offers the My Choice Texas Home program for experienced homebuyers. This program includes the same assistance for down-payments and closing costs, but it lacks the tax credit option. Many Texas mortgage lenders are authorized to offer the My Choice Texas Home program, but LoanDepot has a few advantages compared to the competition.

Best marketplace/broker

LendingTree

See rates
on LendingTree's secure site
Marketplace lenders can save you time when shopping for a mortgage by quickly displaying which lenders in your area offer the most competitive rates. And with access to terms from more than 500 lenders, LendingTree is among the largest marketplaces in all of Texas.

If you want a bird's-eye view of all the lenders in your neck of the woods, LendingTree can instantly show you the state's most attractive rates. But be ready to receive unsolicited calls from third-party lenders if you use this service.

Best rates

KS StateBank

Founded in 1969 as the Kansas State Bank of Manhattan, this financial institution rebranded itself as KS StateBank in 2015. In addition to its headquarters in Manhattan, Kansas, KS StateBank has five more branches across the Sunflower State as well as a branch in Phoenix, Arizona. Despite the fact that it doesn’t have a physical presence in Texas, KS StateBank offers some of the most competitive mortgage rates in the state — but you’ll have to speak with a loan officer to get a quote.

Best for first-time homebuyers

Guild Mortgage

If you’ve never bought a home before, the Texas Department of Housing and Community Affairs (TDHCA) operates an excellent program for first-time buyers. The My First Texas Home program provides down payment assistance and closing cost assistance for 30-year fixed-rate mortgages, and it includes a tax credit option for eligible buyers. And while the TDHCA has authorized several lenders to offer this program, Guild Mortgage stands out as the best.

Cornerstone Home Lending

Cornerstone Home Lending was established in 1988 and is headquartered in San Antonio, Texas. This lender is licensed to operate in 41 states and has offices in 22 states on both coasts.

Cornerstone doesn’t provide home equity loans or lines of credit, nor does it have a special program for first-time homebuyers. But it does offer construction-to-permanent loans, which many other lenders don’t.

Best for face-to-face service

Chase Bank

Although online mortgage lenders have a lot to offer, you may prefer to sit down with a loan officer face-to-face to sort out the details of your mortgage. Chase Bank has a whopping 533 branches in Texas, making it the second-largest bank in the state. So if you want to discuss the terms of your mortgage with a loan officer who’s knowledgeable about your community, Chase could be the right fit.

Best for low income

Caliber Home Loans

Many Americans aren’t earning as much as they did prior to the pandemic. If your income level isn’t where it used to be, Caliber Home Loans can still help you secure a home. Caliber offers a Home Possible program that allows low-to-moderate-income Texans to buy a home even if they have bad credit. Caliber also participates in the TDHCA’s Texas Mortgage Credit Certificate Program, which can save you money if you’re a veteran, first-time homebuyer or if you haven’t owned a home in the past three years.

Best Texas-based lender

Mr. Cooper

There are hundreds of mortgage lenders in Texas, but many of them are headquartered in other states. If working with a local lender is important to you, Mr. Cooper is a solid choice. This lender is based in Dallas, but offers mortgages from coast to coast. It’s also rated 4.5 out of 5 on Trustpilot and has a couple of other standout features.

Best for refinancing

Randolph-Brooks Federal Credit Union

Founded in 1952 and headquartered in Live Oak, Texas, the Randolph-Brooks Federal Credit Union (RBFCU) is the largest credit union in the Lone Star State and the 11th largest in the country. RBFCU has strong ties to local Air Force bases, but you don't need to be in the military — or even be a Texan — to join the credit union. Many homeowners choose to refinance with RBFCU to take advantage of lower rates, although this lender does charge closing costs on such loans.

Compare mortgage lenders

Compare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with basic property and financial details for personalized rates.

Name Product Loan products offered State availability Min. credit score
SoFi
(NMLS #1121636)
SoFi
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY, WV
620
No hidden fees, multiple loan terms, and member discounts available.
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
Online preapproval in minutes and no origination fees with this direct lender.
LendingTree
(NMLS #1136)
LendingTree
Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance
Available in all states
620
Connect with vetted home loan lenders quickly through this online marketplace.
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How do I choose the best lender for me?

There are hundreds of Texas mortgage lenders to choose from, making it tricky to find the right one. When researching the best lender for your needs, abide by these best practices:
  • Read reviews. If you’re unsure about a lender, check popular review sites to see if previous borrowers have had positive experiences.
  • Collect a few preapprovals. If you have several estimates, you’ll have more leverage with lenders.
  • Be ready to bargain. Don’t accept an offer without trying to negotiate a lower rate and better terms.
  • Read the fine print. Pay careful attention to the details of any agreement to ensure there aren’t any hidden surprises.

Average rates and fees in Texas

The average mortgage rate in the US is 3.21% as of September 2020, but it’s significantly lower in Texas. According to the Consumer Financial Protection Bureau (CFPB), the mortgage rate on 30-year fixed-rate mortgages in Texas average 2.875%. And while closing costs in the US typically range between 2% and 5%, closing costs in Texas averaged 1.37% of the sales price according to 2019 data from ClosingCorp. Continue researching mortgage rates in Texas or compare closing costs in Texas for more information.

Should I use a broker?

This list only includes direct lenders in Texas because only they can approve and finance mortgage loans. If you’re too busy to shop around for the best deal — or if you’d rather have someone do the legwork for you — you might consider working with a broker.

While most brokers can be trusted, some have their own agendas and may charge fees you could have otherwise avoided. To find the best broker for you, compare competing rates and read recent reviews to ensure they offer exceptional support.

Bottom line

The best mortgage lenders in Texas each have their own advantages and drawbacks. Depending on your specific situation, one of them might be right for you. Carefully compare what they each have to offer or continue exploring your options.

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