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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đ 2026 CRE Buying Activity Is Back â Why Disciplined Investors Are Re-Entering the Market
đ 2026 CRE Buying Activity Is Back â Why Disciplined Investors Are Re-Entering the Market
đ˘ Commercial Real Estate in 2026: More Buyers, Smarter Leverage, Better Deals
2026 to See Increased CRE Buying Activity: A Disciplined Reset, Not a Speculative Boom
Commercial real estate is entering a new phase in 2026âand the signal is clear: investors are buying again. But this cycle looks very different from the excess-driven expansion of the past decade. Todayâs activity is defined by pricing discipline, conservative leverage, and durable cash flow, not aggressive assumptions.
For borrowers, developers, and investors, this environment creates opportunityâbut only if capital is structured correctly.
Investor Confidence Is Rebuilding
After several years of rate volatility and stalled transactions, confidence is returning. Nearly 95% of investors plan to acquire the same or more assets in 2026, while 55% are increasing capital allocations to real estate, a meaningful jump from last year.
Whatâs driving the shift?
¡Stabilizing interest rates
¡Narrowing bid-ask spreads
¡Underwriting assumptions that finally pencil again
In short, the math is working againâbut only for deals with sound fundamentals.
Capital Is MovingâSelectively
This is not a âbuy everythingâ market. Capital is flowing to well-located, income-producing assets where pricing has adjusted and downside risk is understood.
From a financing standpoint, this favors borrowers who:
¡Present realistic rent growth assumptions
¡Structure conservative leverage
¡Focus on long-term hold strategies
Lenders are activeâbut they are rewarding preparation and discipline.
Where Investors Are Buying in 2026
Geographically, investor demand remains concentrated in high-growth, liquid markets.
¡DallasâFort Worth remains the top U.S. market for the fifth straight year
¡Atlanta continues to attract capital due to population and job growth
¡San Francisco is re-emerging as a selective recovery play
¡Charlotte and Tampa reinforce the strength of Sun Belt fundamentals
These markets offer liquidity, demographic tailwinds, and lender comfortâcritical factors in todayâs credit environment.
Sector Preferences: Back to Fundamentals
Investor interest in 2026 is anchored in traditional property types with clear cash-flow visibility:
¡Multifamily remains the top sector
¡Industrial continues to benefit from reshoring and logistics demand
¡Retail attracts capital where tenant mix and pricing are right
¡Office is still limitedâbut selectively returning for Class A assets in prime locations
Alternative assets remain niche, as most investors prefer repriced core sectors with proven demand.
Risk Appetite Is Measured, Not Aggressive
Roughly two-thirds of investors are targeting value-add and core-plus strategiesâseeking stable income with controlled upside.
Opportunistic and distressed strategies are fading as:
¡Widespread fire-sale pricing fails to materialize
¡Lenders avoid forced liquidations
¡Owners with strong balance sheets hold assets longer
This favors borrowers who can execute business plans without relying on heroic assumptions.
Conservative Leverage Is the New Normal
From a capital markets perspective, leverage discipline defines 2026:
¡Most investors are holding debt ratios steady
¡Nearly half are willing to accept short-term negative leverage
¡The bet is on rent growth and refinancingânot yield compression
This creates strong demand for structured debt, flexible terms, and lender diversificationâareas where mortgage brokers add significant value.
Bottom Line
2026 marks a return to buyingânot a return to excess.
Commercial real estate investors are re-entering the market with confidence grounded in:
¡Improved pricing
¡Disciplined leverage
¡Long-term fundamentals
For borrowers and investors, success in this cycle depends less on timing the marketâand more on structuring capital correctly from day one.
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Š 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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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. 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/