The Top 5 Mortgage Mistakes to Avoid
Buying a home can be an exciting and rewarding experience, but it can also be a daunting and overwhelming process, especially for first-time homebuyers.
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Mortgages are a significant financial commitment, and making mistakes during the process can have serious consequences. In this blog post, we'll explore the top 5 mortgage mistakes to avoid.
1. Failing to Check and Improve Your
Credit Score
Your credit score plays a significant role in determining your eligibility for a mortgage and the interest rate you'll receive. Many first-time homebuyers make the mistake of failing to check their credit score or not taking steps to improve it before applying for a mortgage.
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To avoid this mistake, check your credit score and take steps to improve it if necessary. This may include paying off outstanding debts, making on-time payments, and disputing any errors on your credit report. A higher credit score can lead to a lower interest rate and a more favorable mortgage offer.
2. Ignoring
Closing Costs
Another common mistake is ignoring closing costs. Many first-time homebuyers are unaware of the various fees associated with closing a mortgage, such as attorney fees, title search fees, and appraisal fees. These costs can add up quickly and significantly impact the total cost of the mortgage.
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To avoid this mistake, research the average closing costs in your area and budget accordingly. Be sure to factor in these costs when considering the overall cost of the home.
2. Ignoring Closing Costs
Another common mistake is ignoring closing costs. Many first-time homebuyers are unaware of the various fees associated with closing a mortgage, such as attorney fees, title search fees, and appraisal fees. These costs can add up quickly and significantly impact the total cost of the mortgage.
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To avoid this mistake, research the average closing costs in your area and budget accordingly. Be sure to factor in these costs when considering the overall cost of the home.
3. Not Getting Pre-Approved
Getting pre-approved for a mortgage is an essential step in the home buying process. Pre-approval gives you a clear idea of how much you can afford to spend on a home and helps you avoid the disappointment of falling in love with a home you can't afford.
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To avoid this mistake, get pre-approved for a mortgage before you start shopping for a home. This will help you narrow down your search to homes that are within your budget and prevent you from wasting time on homes that are out of reach.
4. Taking on Too Much Debt
Taking on too much debt before or during the mortgage process can have serious consequences. Lenders look at your debt-to-income ratio when determining your eligibility for a mortgage. If you have too much debt, you may not qualify for a mortgage or may be offered a higher interest rate.
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To avoid this mistake, avoid taking on new debt before or during the mortgage process. This includes opening new credit cards, taking out a car loan, or making large purchases on existing credit cards.
4. Taking on Too
Much Debt
Taking on too much debt before or during the mortgage process can have serious consequences. Lenders look at your debt-to-income ratio when determining your eligibility for a mortgage. If you have too much debt, you may not qualify for a mortgage or may be offered a higher interest rate.
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To avoid this mistake, avoid taking on new debt before or during the mortgage process. This includes opening new credit cards, taking out a car loan, or making large purchases on existing credit cards.
5. Choosing the Wrong Mortgage
Choosing the wrong mortgage can be a costly mistake. There are various types of mortgages available, and each has its pros and cons. Choosing the wrong mortgage can lead to higher interest rates, higher monthly payments, and a more significant financial burden in the long run.
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To avoid this mistake, research the different types of mortgages available and choose the one that best fits your financial situation and goals. Don't be afraid to ask your lender questions and seek advice from a financial advisor.
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⚖️ Attorney Mortgages Explained: High-Income Borrowers’ Secret Weapon 🏡💼
⚖️ Attorney Mortgages Explained: High-Income Borrowers’ Secret Weapon 🏡💼
💼 Attorney Mortgage Loans: How Lawyers Buy More Home With Less Friction ⚖️
Attorney Mortgages: Designed for High-Income, Complex Earners
Attorneys often earn substantial incomes, yet traditional mortgage underwriting does not always reflect the reality of their cash flow. Student loan balances, partnership structures, bonus-driven compensation, and variable income can all create friction with standard loan programs. Attorney mortgage programs are specifically designed to address these issues—making them a preferred option for high-income legal professionals.
At Medallion Funds, we routinely work with attorneys who qualify easily on paper but want smarter structure, flexibility, and efficiency. Attorney mortgages deliver exactly that.
What Is an Attorney Mortgage?
An attorney mortgage is a profession-based home loan tailored for licensed attorneys, including associates, partners, and firm owners. These programs recognize earning potential, career stability, and long-term income growth—rather than focusing narrowly on traditional debt ratios.
Unlike conventional loans, attorney mortgages are built for complexity.
Why Attorneys Prefer These Loan Programs
1. Low or No Down Payment Options
Many attorney mortgage programs allow 5% down with no private mortgage insurance (PMI), even on higher loan balances.
2. Flexible Student Loan Treatment
Instead of penalizing attorneys for six-figure law school debt, lenders often:
·Exclude deferred loans
·Use income-based repayment amounts
·Apply reduced payment calculations
3. High Loan Limits Without Jumbo Headaches
Attorney mortgages frequently offer jumbo-level loan amounts with simpler underwriting than traditional jumbo products.
4. Income Structures That Actually Make Sense
Bonuses, K-1 income, partnership draws, and firm ownership are underwritten more intelligently—critical for attorneys whose income is not W-2 only.
5. Faster, More Predictable Closings
These programs are designed to close efficiently—important when balancing demanding legal careers and competitive housing markets.
Who Qualifies for Attorney Mortgage Programs?
Attorney mortgage eligibility typically includes:
·Licensed attorneys (JD holders)
·Associates, partners, and firm owners
·In-house counsel
·Government and public-sector attorneys
Most programs require proof of licensure and employment, but underwriting is far more nuanced than standard loans.
Why Work With a Mortgage Broker?
Attorney mortgages are not one-size-fits-all products. Guidelines vary by lender, and not all banks interpret them the same way. A mortgage broker:
·Shops multiple attorney programs
·Matches income structure correctly
·Avoids underwriting surprises
·Saves time and frustration
At Medallion Funds, we specialize in structuring loans for professionals who want efficiency, leverage, and certainty.
Final Takeaway
Attorney mortgage programs are popular for a reason. They align lending with reality—rewarding earning power, career stability, and long-term upside rather than penalizing complexity.
If you are an attorney considering a home purchase or refinance, the right structure can significantly improve your outcome.
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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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Copyright ©2021 | Mortgage Viking Team
Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright © 2021 | Medallion Funds
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/
Copyright ©2021 | Mortgage Viking Team Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014 https://medallionfunds.com/bill-rapp/