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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🏢 Lower CRE Loan Rates in 2025: Banks, Agencies & Private Lenders Are Back in the Game 🚀

💸 CRE Borrowing Costs Drop: Why Debt Markets Are Finally Loosening in 2025 📉

Bill Rapp, Commercial Mortgage Broker
November 17, 2025•3 min read

💸 CRE Borrowing Costs Drop: Why Debt Markets Are Finally Loosening in 2025 📉

🏢 Lower CRE Loan Rates in 2025: Banks, Agencies & Private Lenders Are Back in the Game 🚀

CRE Borrowing Costs Drop as Debt Markets Loosen in 2025

After two years of high volatility, the commercial real estate (CRE) debt markets are finally loosening—and borrowing costs are dropping. Rates are down, lenders are re-engaging, and capital is flowing again. For investors and property owners, 2025 is shaping up to be the most favorable financing environment since early 2022.

Here’s what you need to know, and how Medallion Funds helps you capitalize while this window is open.

Fed Rate Cuts Reignite CRE Lending

The Federal Reserve delivered two rate cuts in 2025, bringing the overnight rate to 3.75%–4%. Even with the 10-year Treasury hovering around 4.1%, borrowing costs for commercial loans have pulled back significantly.

Because spreads have compressed and lenders are competing for deals again, borrowers are now seeing:

¡Agency multifamily debt in the upper-4% range

¡Life company loans in the upper-4% range

¡Bank loans in the low-5% to low-6% range

·CMBS execution between 5%–7%

·Debt fund bridge loans between 6%–8%

This is meaningful—CRE interest rates are down nearly 50 basis points year-over-year.

Banks Are Reentering the Market

2024 was a cleanup year for banks. Many spent the year repairing balance sheets, increasing reserves, and navigating regulatory pressure. But in 2025, they’re stepping back in.

A few highlights:

¡Bank share of CRE loans over $2.5M rose from 27% in 2024 to 33% in early 2025

·Still below the pre-2020 norm of 40%, meaning there’s room to grow

¡Liquidity is improving as regional bank stress eases

¡Regulatory tone has softened since mid-2024

This “bank thaw” is one of the most important drivers behind lower borrowing costs.

Private Lenders & Debt Funds Are Flooding the Market

While banks paused in 2024, private lenders filled the gap. Now they’re doubling down.

Debt funds raised $24 billion in the first three quarters of 2025, more than double last year’s pace. Their focus:

¡Bridge loans

¡Value-add projects

¡Repositions

¡Transitional assets

¡Construction-to-perm structures

Because they underwrite with more flexibility, they help push spreads lower across the entire CRE ecosystem.

Rate Snapshot (Q4 2025)

Lender Type

Rate Range

Agency Multifamily

Upper-4%

Life Companies

Upper-4%

Banks

Low-5% to Low-6%

CMBS

5%–7%

Debt Funds

6%–8%

A Cautious Note: The Fed's Path Is Not Guaranteed

Markets originally priced in a 90% chance of another December rate cut. That has dropped to about 70%.

The Fed remains data-dependent. Inflation progress has slowed. Growth is steady but not guaranteed.

Borrowers should see today’s environment for what it is:

👉 A window—not a guarantee.

Time to Borrow While the Market Is Open

CRE isn’t “cheap” compared to 2020–2021—but financing today is the best it’s been in years. With lenders flush with capital, spreads narrow, and competition increasing, borrowers have a real opportunity to lock in favorable terms before the next cycle shift.

At Medallion Funds, we’re structuring:

¡Multifamily

¡Industrial

¡Retail

¡Office

¡Mixed-use

¡Construction

¡Bridge-to-perm

…across 600+ lender relationships.

If you’re exploring a refinance, purchase, or bridge loan, now is the time to move.

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Š 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory

Medallion Funds commercial lendingCMBS financing 2025CMBS financing 2026life company loan ratesagency multifamily ratesbank lending CRE 2025bank lending CRE 2026private lenders commercial real estatedebt markets loosenCRE Interest Rate 2025CRE Interest Rates 2026commercial real estate loan ratesCRE Borrowing Costs
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Bill Rapp - Commercial & Residential Mortgage Broker

Whether you're a first-time homebuyer, a seasoned investor, or a business owner with ambitious plans, securing the right financing is crucial. At Medallion Funds, we take the guesswork out of mortgages, offering a comprehensive suite of residential and commercial loan options to fit your unique needs. Looking for Your Dream Home? We understand the excitement and challenges of navigating the residential real estate market. Our experienced mortgage brokers will guide you through every step, from pre-qualification to closing. We offer a variety of loan programs to suit your financial situation, including: • Fixed-rate mortgages: Offering stability with predictable monthly payments. • Adjustable-rate mortgages (ARMs): Providing competitive rates for a set period. • FHA loans: Making homeownership accessible with lower down payments. • VA loans: Rewarding veterans with attractive rates and flexible terms. Investing in Your Business Future? Growth often requires capital, and we can help you unlock the potential of your commercial property. Our brokers specialize in a wide range of commercial loan options, including: • Purchase loans: Financing the acquisition of new buildings or land. • Construction loans: Facilitating the development of your project. • Refinance loans: Restructuring your existing mortgage for better terms. • SBA loans: Providing access to government-backed financing for qualified businesses. The Medallion Funds Difference: We go beyond simply finding a loan. We take the time to understand your goals and develop a personalized strategy. Here's what sets us apart: • Expertise: Our brokers have a deep understanding of both residential and commercial lending. • Competitive Rates: We leverage our strong lender relationships to secure the best possible terms. • Streamlined Process: We handle the paperwork, keeping you informed every step of the way. • Exceptional Service: We're committed to providing you with a positive and stress-free experience. Ready to Take the First Step? Contact Medallion Funds today for a free consultation. Let's discuss your financing needs and help you achieve your dreams!

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Copyright Š2021 | Mortgage Viking Team

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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 Š 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 Š2021 | 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/