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.
.
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.
,
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.
.
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.
.
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.
.
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.
.
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.
.
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.
.
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.
Blogs
The Top 5 Mortgage Mistakes to Avoid
Buying your first home can be both exciting and nerve-wracking at the same time. With so many things to consider and....
Mortgage Do and
Do not list
Mortgages can be tricky, and it's easy to make mistakes that can end up costing you dearly. That's why we've put together this list....
Tips On How To Improve Your Credit Score
Let's talk about some ways you can improve your credit score! Your credit score is actually a big deal, and it can affect...
šš¢ GSE Cap Hike Could Be a Tailwind for Multifamily Investors in 2026
šš¢ GSE Cap Hike Could Be a Tailwind for Multifamily Investors in 2026
š°šļø $176B in GSE Lending Power: Why Multifamily Financing Just Got Easier
GSE Cap Hike Could Be a Tailwind for Multifamily Investors
Multifamily investors may be entering 2026 with a meaningful financing advantage. The Federal Housing Finance Agency (FHFA) has raised multifamily lending caps for Fannie Mae and Freddie Mac, increasing each agencyās limit from $73 billion to $88 billion.
That brings total agency multifamily capacity to $176 billion, a 20.5% increase year over yearāand it matters for deal flow, execution certainty, and pricing across the apartment market.
From a mortgage brokerage perspective, this cap hike is less about headlines and more about predictability of capital.
What Changedāand What Didnāt
While the numbers are eye-catching, the agencies have effectively been operating at or near an $88B annual pace since mid-2025. In that sense, the new caps represent formalization rather than a sharp directional shift.
However, the incremental $30B in combined capacity is real deployable capital. With multifamily transaction volume expected to increase in 2026, the higher cap reduces the risk that Fannie or Freddie pull back late in the year due to allocation constraints.
For borrowers and sponsors, that reduction in year-end risk is critical.
Mission-Driven Housing Gets Priority
At least 50% of GSE production must support mission-driven housing, including affordability and income-restricted properties. Workforce housing, however, remains uncappedāan important distinction for stabilized assets serving middle-income renters.
Deals that check clear affordability boxes are likely to see:
Faster term sheets
Stronger execution certainty
More consistent leverage and pricing
For sponsors operating in this space, the cap hike reinforces that agency debt remains the first call.
Two Execution Models, Two Different Strengths
The cap increase also highlights the structural differences between the two agencies:
Freddie Mac operates an in-house lending model, allowing for faster executionāparticularly attractive for stabilized or affordable assets.
Fannie Mae relies on its DUS lender network, which provides broader market reach but can introduce slightly longer processing timelines.
From a brokerās standpoint, deal structure, asset profile, and timing determine which execution path is optimal.
Who Benefits Most
The biggest winners from the cap hike include:
Rent-restricted and income-limited properties
Stabilized and late lease-up multifamily assets
Sponsors seeking certainty of execution over marginal rate savings
In oversupplied Sun Belt markets, however, life companies and debt funds may still be competitive on pricingāparticularly for higher-quality or less mission-driven assets.
This makes capital stack strategy more nuanced, not simpler.
Timing Still Matters
A recent Las Vegas lease-up illustrates this point well. The deal initially struggled to gain agency traction, but once affordability targets were met, it closed on meaningfully improved terms.
The lesson is straightforward: agency interest is often timing-dependent, and structuring decisions early in the process can materially impact financing outcomes.
Unlocking a Key Bottleneck
The cap hike will not, by itself, restart the multifamily sales market. But it does ease a major bottleneck by reducing concerns that the agencies will hit their limits late in the year.
With pipelines already filling and lender demand strong, the additional capacity increases the odds that more deals cross the finish line in 2026.
The Takeaway for Multifamily Investors
This cap hike is not just about more lendingāit is about confidence and predictability.
For affordable and workforce housing, it reinforces agency commitment and reduces execution risk. For the broader market, it signals that GSE capital is flowing and remains competitive where it performs best.
For investors and sponsors, that stability can be the difference between a stalled transaction and a closed deal.
https://www.billrapponline.com/
https://findamortgagebroker.com/Profile/WilliamRappJr28883
https://billrapp.commloan.com/
https://billrapponline.com/financingfuturescre-houston-katy
https://houstoncommercialmortgage.com/
https://author.billrapponline.com
https://doctorvideo.billrapponline.com/
https://veteransvideo.billrapponline.com/
https://mortgageviking.billrapponline.com/
https://fha203h.billrapponline.com/
https://renovationvideo.billrapponline.com
https://medallionfunds.com/bill-rapp/
https://www.amazon.com/dp/B0F32Z5BH2
https://veed.cello.so/FOmzTty6oi9
https://creplaybookseries.billrapponline.com
https://creplaybook.billrapponline.com/
Ā© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
10 Tips for First-Time Homebuyers
Buying your first home can be both exciting and nerve-wracking at the same time. With so many things to consider and....
How To Choose the Right Lender for You
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy
Refinancing youe loan and when to do it
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy
š§® Renovation ROI Calculator
š ļø Renovation ROI Calculator š°
Copyright Ā©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 Ā© 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 Ā©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/