How to Get a Mortgage in Texas?

The path to homeownership in Texas comes with its own set of considerations, shaped by local market trends and financial factors. Many residents encounter obstacles, from grasping financial criteria to finding favorable interest rates.

Recent data shows that 60% of first-time buyers in Texas describe the mortgage process as stressful, often causing setbacks. Around 35% of Texans have credit scores under 620, which can limit access to standard loan options. Home prices in areas like Austin and Dallas have grown by more than 30% in five years, paired with property tax rates among the highest nationwide, raising questions about affordability. Shifts in interest rates and lender criteria add further layers to the experience.

At Be My Neighbor Mortgage (BMN), we focus on making this process clearer and more manageable. Our approach includes mortgage options designed for different needs, along with guidance and support from start to finish. Whether it’s improving credit, exploring loan choices, or identifying competitive rates, our team works to keep the experience straightforward. BMN aims to support Texans in achieving their homeownership goals with clarity and ease.

Be My Neighbor (BMN) is a veteran-operated mortgage brokerage operating in 27 states, dedicated to simplifying home financing. BMN offers home purchase loans, refinancing, fast funding, rate comparisons, cash-out refinancing, and property evaluations. Their mission is to bring a personalized, community-focused approach to homeownership.

• Local Expertise (Texas & Beyond) – BMN’s lenders understand state-specific regulations, ensuring a smooth transaction.
• Personalized Loan Matching – Tailored mortgage solutions based on credit profile, income, and homeownership goals.
• End-to-End Support – Guidance from pre-approval to closing for a seamless mortgage experience.
• Exclusive Tools & Resources: Access mortgage calculators, lender comparisons, home-buying guides, and the Debt Locker app to manage financial documents and track debt in one place.

Be My Neighbor (BMN) stands out in the mortgage industry through its personalized, community-focused approach and commitment to making homeownership accessible.

Find the Perfect Mortgage for Your Dream Home with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved

There are a few key steps to getting a mortgage in Texas. Lenders look at your credit, income, and savings to see if you qualify. Understanding these steps will help you understand the home loan process more easily.

Before applying for a mortgage, it’s essential to evaluate your financial readiness. This means taking a close look at your credit score, income stability, and debt-to-income ratio (DTI)—three key factors lenders will use to determine your loan eligibility.

• Credit Score Requirements in Texas: While many lenders prefer a minimum credit score of 620 for conventional loans, FHA loans in Texas may allow scores as low as 580 with a 3.5% down payment.
• Debt-to-Income Ratio: A typical DTI limit for Texas mortgages is 43%, though some programs allow higher ratios.

💡 Quick Tip: Start by obtaining your credit report from TransUnion, Experian, and Equifax. Address any discrepancies and reduce outstanding debt to improve your chances of approval.

In Texas’s competitive real estate markets like Austin, Dallas, and Houston, getting pre-approved is a must. Sellers often prioritize offers from pre-approved buyers because it shows you’re serious and financially ready to close the deal.

During the pre-approval process, lenders will review:

• Income and Employment History
• Credit Report and Score
• Down Payment Amount and Available Assets

• It sets a clear budget for your home search.
• It strengthens your offer in competitive markets.

Texas offers a variety of loan options to meet the needs of different buyers. Understanding these options will help you choose the best loan for your financial situation.

Conventional loans suit buyers with solid credit and steady income. FHA loans are great for first-time buyers with lower credit and down payment needs. VA loans offer zero down for veterans and military. USDA loans provide no-down-payment options for rural homes.

Find the Perfect Mortgage for Your Dream Home with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved

Texas mortgage rates fluctuate based on several factors, including economic conditions, property location, and loan type. Comparing rates from multiple lenders will help you secure the best deal.

Factors Influencing Texas Mortgage Rates:

• Federal Reserve Policies
• Location (urban vs. rural areas)
• Loan Type and Term (e.g., 15-year fixed vs. 30-year fixed)

💡 Tip: Monitor interest rate trends and consider locking your rate when you’re satisfied with the terms. This protects you from future rate increases during the underwriting process.

Once you’ve chosen the right loan, it’s time to formally apply and provide the necessary documentation. Texas lenders typically require:

• Tax Returns and W-2s (last two years)
• Bank Statements and Proof of Assets
• Employment Verification
• Credit History Review

Be prepared: Texas lenders are thorough in their documentation requirements, especially for self-employed borrowers or those with non-traditional income sources.

At this stage, the lender will order a home appraisal to ensure the property’s market value supports the loan amount. Meanwhile, underwriters will assess your financial profile to verify you meet all loan conditions.

Common Underwriting Steps:

• Confirming employment and income.
• Reviewing assets and liabilities.
• Ensuring the home meets minimum property standards (especially for FHA loans).

Find the Perfect Mortgage for Your Dream Home with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved

Closing is the final step in the mortgage process—when you’ll officially become a homeowner! In Texas, the closing process typically takes place at a title company, where you’ll sign documents and pay any remaining fees.

What to Expect at Closing:

• Down Payment: Depending on your loan, this could range from 0% (VA or USDA) to 20% or more for conventional loans.
• Closing Costs: Typically 2-5% of the loan amount, covering fees for title services, lender charges, and prepaid expenses like homeowners insurance and property taxes.

💡 Note on Texas Property Taxes: Texas has some of the highest property tax rates in the country, so it’s important to budget accordingly. Many lenders require property tax escrow to ensure taxes are paid on time.

For first-time buyers or those needing a bit of extra help, Texas offers several assistance programs:

• Texas State Affordable Housing Corporation (TSAHC): Down payment assistance and low-interest loans for eligible buyers.
• My First Texas Home Program: Offers down payment and closing cost assistance along with competitive interest rates.
• Texas Mortgage Credit Certificate (MCC) Program: Provides a federal tax credit of up to $2,000 annually for first-time homebuyers.

At Be My Neighbor Mortgage (BMN), we believe securing a mortgage should be a smooth and empowering experience—not an overwhelming one. led by seasoned professionals like Isabel Williams, we focus on personalized solutions that cater to your unique financial situation, ensuring you get the best loan option with the most favorable terms.

Most lenders require a minimum credit score of 620 for conventional loans, but FHA loans may accept scores as low as 580.

The pre-approval process typically takes 1-3 days, but the entire mortgage process, from application to closing, can take around 1-3 months.

Yes, Texas offers programs like the My First Texas Home Program and the Texas Mortgage Credit Certificate (MCC) to assist first-time buyers with down payment and closing costs.

Find the Perfect Mortgage for Your Dream Home with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved