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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🚀📉 “Is 2026 the Year of the Great Refinance Boom?” | Mortgage Rates, Equity & Opportunity 📈🏡
🚀📉 “Is 2026 the Year of the Great Refinance Boom?” | Mortgage Rates, Equity & Opportunity 📈🏡
🏦💸 “2026 Refinance Wave: Will Falling Mortgage Rates Spark a Historic Refi Boom?” 📉🔥
📉 Is 2026 the Year of the Great Refinance Boom?
Mortgage rates are finally breaking lower after years of volatility — and homeowners, investors, and business owners are all asking the same question:
Will 2026 be the year refinance demand surges again?
At Medallion Funds, we’re already seeing early indicators pointing to one of the strongest refinance cycles since 2020–2021. From rate cuts to improved liquidity, the market is shifting, and smart borrowers are preparing now instead of waiting.
Let’s break down what’s driving the momentum — and what it means for you.
🔥 1. Rates Are Drifting Lower After Years of Pain
After peaking in the 7–8% range, mortgage rates have steadily moved down as:
·The Federal Reserve signals continued rate cuts
·Inflation cools
·Debt markets regain liquidity
·Investors pile back into mortgage-backed securities
By mid-2026, many analysts project rates settling in the mid-5% range, with potential dips into the high-4s depending on market volatility.
For borrowers who locked in anytime between 2022–2024, this could be a massive opportunity to refinance.
🔥 2. Millions of Homeowners Will Finally Be “In the Money” to Refi
Between 2022 and 2024, buyers purchased homes at:
·Higher rates
·Record prices
·Significant payment pressure
As rates fall, these homeowners will enter the refinance sweet spot. According to national mortgage analytics, over 7 million borrowers could become eligible for a meaningful rate-reduction refinance by 2026.
For investors with DSCR loans, this also means:
·Higher cash flow
·Better DSCR
·The ability to pull cash out
·Stronger long-term hold metrics
🔥 3. Liquidity Is Returning Across All Lending Channels
We’re seeing:
·Banks re-entering the mortgage market
·Non-QM lenders expanding programs
·DSCR, bank-statement, and investor loan rates declining
·Commercial lending spreads tightening
With more lenders fighting for business, pricing becomes more competitive, creating the perfect environment for a refinance boom.
🔥 4. Home Values Are Still High — Unlocking Record Equity
Even with minor market corrections, nationwide home values remain near all-time highs.
This opens doors for:
·Cash-out refinances
·Investment portfolio refinancing
·Renovation loans
·Equity repositioning
Many investors will use 2026–2027 to restructure their balance sheets while values remain elevated.
🔥 5. Who Should Consider Refinancing in 2026?
Homebuyers who purchased from 2022–2024
They locked in during peak rates and can reduce payments dramatically.
Real estate investors
Improving DSCR = higher appraised loan amounts + stronger yield.
Self-employed borrowers
Bank-statement and asset-qualifying loans become cheaper.
Anyone planning a cash-out strategy
2026 may be the best window before the next rate cycle turns.
💡 Final Takeaway: Don’t Wait Until 2026 — Start Preparing Now
By the time the Fed announces additional cuts, the market will already be pricing them in.
Smart borrowers prepare early:
·Review your current mortgage
·Analyze payment savings
·Run DSCR improvement scenarios
·Get prequalified so you can lock quickly
·Understand timing and costs
If you want to be first in line when the refi window opens, Medallion Funds is already preparing clients for that shift.
If 2026 becomes the year of the Great Refinance Boom — those who prepare early will benefit the most.
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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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Refinancing youe loan and when to do it
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🧮 Renovation ROI Calculator
🛠️ Renovation ROI Calculator 💰
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/