Best Lenders in Central Texas?

Question

I'm looking to close on my first property in the Austin Area and I've heard that Credit Unions are a good way to go for getting great interest rates and such. I'm seeking either a first-time home-buyer loan, or a residential investment loan. I was pre-approved by a few websites like Better Mortgage, but I want to ensure I'm getting the best deal. I've been offered rates like 2.8% at time of approval. My credit score is something like 780, I have a full-time job, and no real monthly obligations or debt. However, I also have no investment property yet. Do you have any favorite lenders right now? Thanks!

Jacob Pereira · Answer

I second @Ryan Kelly's suggestion of UFCU, although I've never had a client have to join the credit union to use them (maybe they're automatically enrolled by having a loan with them?). Their rates are almost always the lowest out of the lenders we recommend, although they can be a bit less responsive than commission-based lenders. My recommendation is to get their rates and then shop them around to other lenders to match or beat. It's worked very well for my clients.

Pete Harper · Answer

I recently refinanced a BRRR 4-plex in my company's name.  It seems with Covid much of the commercial financing had dried up.  The private money lenders like Visio were no longer underwriting loans.  I started a search for portfolio lenders.  I made a list of all the small local banks and credit unions and started calling them.  I must have called 20 banks to find two that were underwriting commercial loans.  I ended up going with Texas Commerce Bank.  I'm paying 4.25%, 80% LTV on a 15 year note with no points or fees.  That compares with 5.75%, 2 points, 75% LTV on 30yr is the best Visio was quoting me before Covid hit.  If you can't do FHA, your best bet is to get on the phone and start calling local banks yourself.  Any broker will charge you 1% and all seem to use the same lending sources.  Go straight to the bank and cut out the middle man.

Ryan Kelly · Answer

@Dave Kay I've got several great local lenders and happy to connect you. Very responsive and high-producing with great rates. I've also used UFCU for investment loans as well, which is the largest mortgage lender in the Austin area. You just need to join the credit union as a member before taking out a loan with them.

Jordan Moorhead · Answer

@Dave Kay I have a bunch of great lenders I could recommend. For a simple conforming loan a credit union doesn't really make a difference. There's no need to be creative

Ryan Kelly · Answer

@Jacob Pereira I think you are right, the mortgage is the membership!

Ben Lapane · Answer

@Dave Kay

In my opinion, the key is to read the loan estimate. Anyone can throw out 2.8 on the front end but when they send you that loan estimate and your fees are crazy high then walk away . I’m seeing 3.6% APR for low fee mortgages with no cash out at 80% LTV in south Texas.

Remember, your looking for the Wal-Mart of mortgage companies, not the Whole Foods of mortgage lenders.

Dave Kay · Answer

2.8% is for the first-time home-buyer deal by the way - haven't gauged rates for an investment loan

Best Lenders in Central Texas?

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