Buying a Home in Dallas? Here's How to Get the Best Mortgage Rates
Buying a Home in Dallas? Here's How to Get the Best Mortgage Rates
By Steven | Refind Realty
If you’re planning to buy a home in Dallas this year, the interest rate on your mortgage is going to shape your monthly payment — and your long-term cost. I've helped dozens of buyers lock in great rates, and I'm going to walk you through how you can do it too.
Getting a low rate isn’t just about timing the market. It's about preparation, smart choices, and using the right tools (like the Lone Star App) to your advantage.
Step 1: Know What Affects Your Mortgage Rate
Mortgage lenders look at five key things:
Your credit score
Your down payment amount
The loan type and term (30-year vs. 15-year)
Current interest rate trends
Your debt-to-income ratio
The better your credit and the more money you put down, the better your rate. But even if you’re not in perfect shape financially, there are ways to improve your position before applying.
Step 2: Improve Your Credit Score First
Before you apply for a loan, pull your credit report and take care of anything that might be hurting your score:
Pay off credit cards or bring them under 30% utilization
Dispute any errors
Avoid new credit applications
Make on-time payments consistently
Even a 20-point increase in your score can lead to a better mortgage rate and thousands saved over the life of your loan.
Step 3: Compare Lenders — Don’t Just Go with One
This is where many buyers lose money. Don’t just use the bank you already work with.
I always recommend getting at least three quotes. Use that to negotiate. Some lenders may offer better deals based on your income, occupation, or even the property type you're buying.
👉 Start with my recommended lenders inside the Lone Star App
Step 4: Understand Rate Lock Timing
Mortgage rates can change daily. Once you find a good rate, ask about locking it in. A rate lock freezes the terms for a specific period, usually 30 to 60 days, so you're protected from rate hikes while you close.
Step 5: Consider Points If You Plan to Stay Long-Term
You can "buy down" your interest rate by paying more upfront in closing costs. This is called buying points.
One point typically costs 1% of your loan amount
It can reduce your rate by about 0.25%
If you’re staying in the home for 7 years or more, this can save a lot. I’ll help you run the numbers before deciding.
Step 6: Get Pre-Approved (Not Just Pre-Qualified)
Pre-approval shows sellers you're serious and financially ready. It also helps you shop with clarity, knowing your exact budget and estimated monthly payment.
Final Thoughts
Buying a home in Dallas doesn’t have to be overwhelming. With the right prep and strategy, you can land the home you want and get a great mortgage rate.
👉 Download the Lone Star App here
You're Always Home With Refind Realty!
FAQs
Q: What’s a good mortgage rate right now in Dallas?
A: In early 2025, rates are averaging around 6.5% for a 30-year fixed. But your personal rate may be higher or lower depending on credit and down payment.
Q: Can I get a good rate with less than 20% down?
A: Yes. While 20% avoids mortgage insurance, there are competitive rates available for FHA, VA, and conventional loans with lower down payments.
Q: Should I use a mortgage broker or go directly to a lender?
A: Mortgage brokers can shop multiple lenders for you, which may get you better rates. I work with both and can guide you based on your situation.
Q: Does getting pre-approved hurt my credit?
A: It triggers a small inquiry, but it’s worth it. Pre-approval is essential for serious buyers in today’s competitive market.
Q: Can I refinance later if rates drop?
A: Absolutely. If you lock in now and rates fall later, you can refinance. I’ll help connect you with lenders who make that process easy.
