Finding the Best Mortgage Lenders in Dallas TX

Finding the Best Mortgage Lenders in Dallas TX

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mortgage lenders in Dallas TX

Mortgage lenders in Dallas TX are not in short supply. But how can you go about separating the best from the options available, bearing in mind a mortgage is one of the most significant financial decisions you can make?

According to the U.S. Census Bureau 2017, homeownership rate in the country is lower than it has been for more than two decades. Fascinating, considering the slump that had gripped the housing markets is well and truly over.

While this is not the subject of our discussion today, it would perhaps be good to highlight the reasons for the slow uptake.

Policymakers and researchers are attributing this to a number of reasons, including (and perhaps more pertinent to this article) increased regulation of mortgage lending and more stringent underwriting criteria.

The other three prominent reasons have more to do with a demographic that is coming of age and entering into the homeownership stage.

These are:

  • High student loan debt levels among younger households.
  • Ailing labor markets for youthful workers, pushing them to defer homeownership and household formation.
  • A preference by millennials to rent rather than own.

That aside, there is no denying that homeownership continues to be a key pillar of the American Dream and circumstances permitting, there is still a large appetite for homeownership.

If you are considering joining this bandwagon, then you need to find a good mortgage lender.

Why you need a Good Mortgage Lender

Most potential homeowners have it all wrong when it comes to choosing mortgage lenders in Dallas TX. As much as interest rates are a key part of the equation, choosing an ideal lender is not just about finding the lowest rate.

The fact of the matter is that purchasing a home is a long-term commitment, more so than you might think.

Here is what we mean.

Mortgages have been found to last longer than marriages [PDF] in the United States.

The average union in America lasts eight years before ending in divorce. In contrast, a mortgage stretches for much longer, requiring you to make monthly payments for 15 to 30 years.

Interpreted another way, picking the wrong type of mortgage or wrong lender could end up costing you your home.

Choosing Mortgage Lenders in Dallas TX

Dallas is a great place to own a home. Scratch that – Dallas is one of the best markets for real estate investment in the country.

Housing prices have been recently climbing at 10% per year, a trend that is set to continue in a market that is still considered undervalued.

If you are thinking of putting down roots here, you can revel in the knowledge that you are making a prudent decision as far as the viability of the market is concerned.

However, the last thing anyone of us wants is to see their dreams turn to custard. Therefore, do not overlook the importance of finding a competent and trustworthy mortgage lender to partner with.

Here are the some tips to keep in mind when evaluating mortgage lenders in Dallas TX:

  • Consult a Local Real Estate Agent

Real estate agents are often a great resource when it comes issues touching on home buying.

If you are a resident of Dallas, you probably have an idea of good real estate agents to approach.

If you don’t, and this applies to the out-of-towners as well, it is important to do some good digging up to establish trustworthy real estate agents who can be relied upon to provide guidance.

Local agents worth their salt will point you to reputable mortgage lenders in Dallas TX with a solid track record.

  • Opt for Salary-based over Commission-based Mortgage Agents

The problem with commission-based mortgage lenders is that they are largely focused on closing your mortgage with little regard to whether the terms of the mortgage are in your best interests or not.

This is not the case with salary-based mortgage lenders.

Taking a mortgage with this type of lender frees you of the niggling worry that they are locking you into a huge financial commitment just so that they can meet their own monthly mortgage payments, something commission-based agents have been accused of doing.

A lender who is conscious of your current finances, as well as your financial outlook and goals, is best placed to advise you.

A mortgage is a lot of money we are talking about. Therefore, it is extremely important to be sure your mortgage lender is not only in it for their own bank account, but also watching out for your interests as well.

  • Choose a Lender with a Variety of Mortgage Programs

Something else to look for when choosing mortgage lenders in Dallas TX is to consider their portfolio in terms of the mortgage programs they offer.

Lenders with a limited variety of programs may lock you into a suboptimal mortgage whereas there are better options out there ideal for your situation.

In short, you need to shop around for a good mortgage program which is a good fit before you sign on the dotted line. You could start by checking whether or not programs such as VA mortgages and FHA loans are part of the lender’s package.

Something else to consider is whether the lender has access to or is privy to down-payment assistance programs.

Both first-time homebuyers and their seasoned counterparts have many of these options available. This will vary from one county to the next, but a good lender will know what is available to you. This is a fantastic way to save even more money each month.

  • Only an Experienced, Reputable Lender will do

When searching for mortgage lenders in Dallas TX, opt for lenders who have been around the block and know how to get the job done with speed and efficiency.

The mortgage lending service is a bit like legal services. While there is always a chance you could unearth a young jewel, more often than not, experience counts.

And just as you would go for an attorney specializing in a certain field for best results, so it is with mortgage lenders: you need one experienced enough in the type of loan you seek.

If their service comes with in-house underwriting, even better. This is a sign that the process of acquiring the mortgage will be smoother. What’s more, this removes the unnecessary tension of having to worry about late closing or penalty fees.

Online reviews will come in handy at this point, no matter how promising a lender may seem. Look at how previous borrowers have rated them on the various platforms, including Google, Zillow, BBC ratings etc.

  • Compare the Rates

Comparing lender rates is not a fun part of the mortgage search process, but that doesn’t mean it is not important.

Avoid the temptation to sign up with the first lender who approves your application. In the course of your homework, inquire about the full estimate of the costs and terms. Once you have this data, compare the costs and terms of each offer.

Sure, the main objective here is to find the lender with the most promising interest rates and fees. But as we mentioned earlier, that should not be the end all: you also need to take into account the lender’s reputation and financial stability.

  • Ask Questions

Asking questions is a great way to gain insight into the kind of lender you will be entrusting your money with.

More than that, asking specific questions will allow you to narrow down on the best option(s) as the answers will shed more light into each lender’s offering.

For example, you could ask about how each lender goes about the process of closing a loan. What type of closing fees are involved? Are there are any additional fees you are required to pay?

It is important to do your due diligence before signing off with any lender.


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