How to Find the Best Dallas Mortgage Lender

Buying a home is one of the most exciting times of your life. To make the process as smooth as possible, you’ll want to search for the best mortgage lenders in the Dallas, Texas, area. A top-notch mortgage lender who understands the Dallas housing market can help you find the best loan for your unique needs. Before embarking on your house-hunting adventure, follow these tips for finding the best Dallas mortgage lenders.

Get Your Finances in Order

It’s imperative to get your finances in order before you begin your search for a Dallas mortgage lender. Some of the most important things you should do before hand are:

Improving Your Credit Score and History

Mortgage lenders look at your credit score and credit report to determine your interest rate. In general, the better your credit score, the lower the interest rate. In addition, make sure your credit history doesn’t have inaccuracies. If you find any, clear them up so you have a lower debt-to-income ratio.

Paying Down Your Debt

Lenders will scrutinize your debt-to-income ratio (DTI) to determine if you can afford to pay the loan back. Mortgage lenders look for a DTI that’s typically lower than 43%, and some lenders want to see a DTI of less than 36%. Work on paying off credit card debt, student loans, or automobile loans to lower your DTI.

Creating a Savings Account for Your Down Payment

The more money you can use as a down payment, the better interest rate you can get. While some lenders will accept a down payment of as little as 3%, try to save enough for a down payment of 10-20%. If you put down less than 20%, you’ll have to pay for private mortgage insurance. In addition, save for extra fees such as closing costs.

Estimate how much you can pay for monthly mortgage payments. Analyze your income and expenses and determine how much you can realistically afford for your monthly payments. You’ll also want to have extra money for increased interest rates.

Gather Your Documents for Pre-Qualification

While getting pre-qualified for a loan can help mortgage lenders determine the amount of loan you can afford, it doesn’t necessarily mean you’ll get the loan. However, if you have your documents together, mortgage brokers can easily review your paperwork to see if you are eligible for a loan. Most mortgage lenders ask for the following documents:

  • Current pay stubs for the last two months.
  • Where you’ve lived or resident information for the past two years.
  • Source and amount of your down payment.
  • W-2 forms from the last two years.
  • Federal tax returns from the last two years if you’re self-employed.
  • All income statements from bank accounts, retirement funds, and stock investments. 
  • Credit report (to avoid a hard inquiry).

Once you submit these documents to your Dallas mortgage lender, they’ll review them and, if applicable, let you start the loan application process.

How to Find the Best Dallas Mortgage Lender - The Tuttle Group Work With Lenders Who Offer a Variety of Mortgages

Lenders offer a wide range of mortgages depending on your qualifications. Most people qualify for a conventional loan when they have good credit and can make a sufficient down payment. If your credit score runs on the lower side or you don’t have enough savings for a large down payment, you might qualify for a Federal Housing Administration or Housing and Urban Development loan. Specialty loans include U.S. Department of Agriculture, Veteran’s Administration, and Jumbo loans. It’s important to work with Dallas mortgage lenders who understands each loan type and can help you qualify for the one best suited for your situation.

Speak with your lender to determine if you should go with an adjustable-rate or a fixed-rate mortgage and whether you want a short-term or long-term loan. Some lenders might also offer a hybrid adjustable-rate mortgage.

Compare Loan Quotes

Dallas mortgage brokers seek out a variety of lenders who will give you a loan. Once you’ve applied for a loan and given the mortgage broker all the pertinent information and documentation, you’ll receive a loan estimate. This document shows the interest rate, monthly payments, closing costs, private mortgage insurance (if applicable), and other fees associated with buying a home. Take the time to review the loan estimates from at least three lenders. Carefully read and compare all the costs, and choose the one with which you feel most comfortable.

Work With Mortgage Lenders Who Offer Transparency

Buying a home is a big investment, and you want to have complete transparency about all the costs and fees involved in a mortgage. You should feel comfortable speaking with your mortgage lenders in Dallas about the details of the closing costs, whether the lender charges prepayment penalties, whether you can refinance the loan, and whether they offer discount points. 

The more open your mortgage lender is with you, the better you’ll feel about the entire home buying process. Choosing a mortgage lender is a personal choice, so pick a lender who will listen to your needs so you can make an informed decision about the best loan for your situation.

Find Your Dream Mortgage Lender Today and Start the Home buying Process

Taking time to research the best mortgage lenders in Dallas will help you find a lender who will work with your finances and provide home loans such as conventional loans. Our team at the Tuttle Group can answer any questions you have about the home buying process. We can help streamline your approval so you can move into your new home as soon as possible. Contact us today to get started.

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