Choosing a mortgage lender in Texas can feel like a minefield. Pick the wrong one, and you could be stuck with high fees, bad rates, or delayed closing. Nobody wants that.
I’ve seen buyers rush into deals with the first lender they find, only to regret it later. Zero research. No comparisons. Just blind trust. Bad move.
If you’re buying a home in Texas, avoid these mortgage mistakes when buying a home to ensure you don’t sabotage your finances before you even get the keys.
1. Not Shopping Around for the Best Deal
This one’s a classic. Too many buyers settle for the first lender they talk to.Big mistake.Lenders have different rates, fees, and loan programs. Some will cost you thousands more over time.Always check out multiple lenders and compare:
- Interest rates – Even a fraction of a percent can save (or cost) you a lot.
- Loan types – Not all loans fit every buyer. Know the options.
- Fees – Origination fees, points, hidden charges? Read the fine print.
- Customer service – Slow responses? Bad communication? Red flag.
If you don’t compare, you’re leaving money on the table.
2. Ignoring the True Cost of the Loan
The interest rate isn’t the only number that matters. Too many buyers see a low rate and assume it’s a great deal.That’s how lenders get you.Look beyond the rate. Pay attention to:
- APR (Annual Percentage Rate) – This includes fees and gives you the real cost.
- Loan term – A 15-year loan saves money overall but has higher monthly payments.
- Closing costs – These can sneak up if you’re not paying attention.
- Prepayment penalties – Some lenders charge extra if you pay it off early.
Do the math. What looks cheap upfront might drain your wallet in the long run.
3. Choosing a Lender Just Because of a Low Rate
Sure, getting a great rate is key. But if a lender has a reputation for delays, bad service, or surprise fees, it’s not worth it.I’ve seen buyers go with the cheapest option, only to deal with:
- Sudden loan denials last minute.
- Weeks of delays that mess up their move-in date.
- Poor communication that makes everything stressful.
Low rates are nice, but reliability is priceless.
4. Not Getting Pre-Approved First
Picture this: You find your dream home in Texas. You make an offer. Then… you realize you’re not even pre-approved.Now sellers don’t take you seriously.Without pre-approval, you’re wasting time. Plus, you’ll have zero clue what you can actually afford. Instead, get pre-approved so you:
- Know your price range.
- Look serious to sellers.
- Avoid surprises when it’s time to close.
It takes a little effort but saves a ton of headaches.
5. Overlooking Local Lenders
Big banks? They have flashy ads, but they’re not always the best for Texas homebuyers.
Local mortgage lenders in Texas often offer:
- Better customer service.
- Faster closings cost since they know the local market.
- More flexibility on loan options.
Don’t ignore smaller lenders. They might just give you a better deal with less hassle.
FAQs
How many mortgage lenders should I compare before choosing?
At least three. More if you want the best deal.
What’s the difference between pre-qualified and pre-approved?
Pre-qualified is an estimate. Pre-approved means a lender has actually verified your details.
Can I negotiate mortgage rates and fees?
Yes. Don’t take the first offer. Ask for better terms.
Is a local Texas lender better than a big bank?
Depends. Local lenders often know the Texas real estate market better and can move faster.
Avoid these mistakes, and you’ll be in a much better spot when choosing a mortgage lender in Texas.