If your present grass is OK, I don't think that I would disc it all up as you will be starting all over and the whole yard will be soft dirt and muddy if it rains until the new grass get established. I would have some top soil hauled in and use a smaller tractor with about a 7' wide landscape rake. You can work it both ways to smooth it in the low spots. Then use at least a 5' wide roller to press the soil down so that the remaining low spots will show up. Add more dirt to those areas and and rake again. Then roll again and continue until you are satisfied with the result.
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