"Also could you recommend a good offset to run on a new set of 16x10 rims? Looking to run 35' or 37'"
I'm running 16.5X9.75 with 4.5" backspace (-20mm offset?) 35X12.5 tires. I have about 2.75" clearance at full lock from the pitman arm. Gives the truck a nice stance IMO. If you keep some lift you should be ok with 37"
"And lower it a bit"
Lifted is great for rock crawling.... A PITA if you want to throw a bale of hay in the back.