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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š¦š Regional Banks Are Back in CRE Lending ā What It Means for Smart Borrowers in 2026
š¦š Regional Banks Are Back in CRE Lending ā What It Means for Smart Borrowers in 2026
š¢š° CRE Financing Is Thawing: Why Regional Banks Are Re-Entering the Market (Cautiously)
Regional Banks Are Quietly Re-Entering CRE Lending ā And the Math Finally Works Again
After nearly three years of retrenchment, regional banks are cautiously re-entering the commercial real estate (CRE) lending market. This shift marks a meaningful inflection point for borrowers who survived the post-2022 credit contraction and are now seeing refinancing and acquisition math improve as interest rates ease.
For commercial property owners, investors, and developers, this does not mean a return to loose underwriting. Instead, it signals a more disciplined, cash-flow-driven lending environmentāone that rewards strong assets, conservative leverage, and realistic valuations.
Why Regional Banks Pulled Back After 2022
The Federal Reserveās aggressive rate-hiking cycle fundamentally disrupted CRE lending economics. Higher capital costs, widening cap rates, and office-sector stress forced many banks to:
Ā·Reduce loan originations
Ā·Shrink CRE exposure
Ā·Prioritize balance-sheet preservation
As refinancing risk roseāparticularly for office and highly leveraged multifamily assetsāregional banks chose caution over growth.
What Changed in 2025ā2026?
According to recent earnings calls, bank executives are seeing stabilization driven by:
Ā·Lower interest rates improving debt-service coverage
Ā·Tighter underwriting standards reducing downside risk
Ā·More conservative deal structures restoring lender confidence
Several institutions explicitly stated that āthe math is starting to work again.ā
Lenders including Regions Financial, First Horizon, KeyCorp, and PNC Financial reported early signs of CRE loan growthāparticularly tied to refinancing activity in multifamily and industrial assets.
Meanwhile, M&T Bank and U.S. Bancorp emphasized slowing portfolio runoff, reduced office exposure, and improving credit quality.
What This Means for CRE Borrowers Today
For borrowers, this is not a green light to push leverageāitās a window to restructure intelligently.
Regional banks are selectively lending where:
Ā·Cash flow is durable
Ā·Loan-to-value ratios are conservative
Ā·Assets align with lender concentration limits
Multifamily and industrial continue to lead, while office lending remains highly selective and location-specific.
Why Brokers Matter More Than Ever
As banks re-enter with discipline, deal positioning matters more than rate shopping. Borrowers who understand lender credit boxesāand can structure deals accordinglyāare the ones getting funded.
At Medallion Funds, weāre seeing:
Ā·More regional bank term sheets
Ā·Better refinance proceeds on stabilized assets
Ā·Increased lender competition on strong deals
But only when underwriting assumptions are realistic and defensible.
The Bottom Line
Regional banks are no longer retreatingābut they arenāt chasing volume either. This is a measured normalization, not a boom.
For prepared borrowers, this environment creates opportunity:
Ā·Refinance maturing debt
Ā·Reset capital stacks
Ā·Position assets for long-term stability
If youāre approaching a loan maturity or evaluating financing options in 2026, now is the time to reassess your strategyābefore credit tightens again.
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Ā© 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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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/