Mortgage Do's And Don'ts
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 of Mortgage Do's and Do not's to help you navigate the process with ease - and a little bit of humor.
DO: Shop around for the best mortgage rates
DON'T: Assume your bank will give you the best rate just because you have a checking account there. Remember, loyalty is a two-way street.
DO: Have a budget in mind
DON'T: Get in over your head. Just because you can technically afford a million-dollar mansion doesn't mean you should buy one. You don't want to be house-poor and unable to afford groceries.
DO: Get pre-approved before house-hunting
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DON'T: Assume you'll be approved for a mortgage just because you have good credit. Pre-approval is important because it gives you a better idea of how much house you can afford and shows sellers that you're serious.
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DO: Consider your future plans
.
DON'T: Assume you'll live in your new house forever. Life happens, and you may need to sell sooner than you think. Make sure you're not getting into a mortgage that you can't realistically afford if you need to move in a few years.
DO: Get pre-approved before house-hunting
.
DON'T: Assume you'll be approved for a mortgage just because you have good credit. Pre-approval is important because it gives you a better idea of how much house you can afford and shows sellers that you're serious.
.
DO: Consider your future plans
.
DON'T: Assume you'll live in your new house forever. Life happens, and you may need to sell sooner than you think. Make sure you're not getting into a mortgage that you can't realistically afford if you need to move in a few years.
DO: Read the fine print
.
DON'T: Sign on the dotted line without reading the terms and conditions. There may be hidden fees or clauses that could come back to haunt you later.
.
DO: Be prepared for unexpected expenses
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DON'T: Assume everything will go smoothly. There may be unforeseen expenses, like a leaky roof or a broken furnace, that can quickly drain your savings. Be sure to budget for these types of surprises.
DO: Read the fine print
.
DON'T: Sign on the dotted line without reading the terms and conditions. There may be hidden fees or clauses that could come back to haunt you later.
.
DO: Be prepared for unexpected expenses
.
DON'T: Assume everything will go smoothly. There may be unforeseen expenses, like a leaky roof or a broken furnace, that can quickly drain your savings. Be sure to budget for these types of surprises.
DO: Have a good sense of humor
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DON'T: Take everything too seriously. Yes, buying a house and getting a mortgage can be stressful, but try to find the humor in the situation. After all, laughter is the best medicine for a stressful day.
.
By following these Mortgage Do's and Do not's, you'll be well on your way to successfully navigating the mortgage process - with a smile on your face. Good luck, and happy house hunting!
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🏗️ Renovation Loans 101: The Ultimate Guide to Financing Fixer-Uppers, Add-Ons & Rebuilds 🔧
🏗️ Renovation Loans 101: The Ultimate Guide to Financing Fixer-Uppers, Add-Ons & Rebuilds 🔧
🔥 Renovation Loan Secrets: How to Finance Home Upgrades, Major Repairs & Full Rebuilds in 2026 🛠️
🏗️ Renovation Loans 101: How to Finance Fixer-Uppers, Add-Ons & Rebuilds
Renovation loans are one of the most powerful — yet misunderstood — tools available to homebuyers, homeowners, and investors. Whether you’re buying a fixer-upper, adding square footage, upgrading outdated systems, or rebuilding after damage, the right renovation loan can turn a vision into reality without draining your cash reserves.
As a mortgage broker with access to multiple investors and specialty lenders, I help clients compare renovation options and choose the product that fits their budget, goals, and timeline. Here’s everything homeowners and investors need to know.
🔨 What Exactly Is a Renovation Loan?
A renovation loan allows you to finance the purchase AND the renovation costs into one mortgage.
Instead of paying out of pocket or using high-interest credit, you can roll construction costs into the loan based on the property’s after-repair value (ARV).
This is where the magic happens — financing based on the future value gives you more borrowing power and a cleaner way to manage your budget.
🛠️ The Most Popular Renovation Loan Types
1. FHA 203(k) Renovation Loans
Best for: First-time buyers, homeowners on a budget, disaster-affected borrowers
Benefits:
Low down payment
Flexible credit requirements
Finance structural repairs OR cosmetic upgrades
Perfect for fixer-uppers and storm-damaged homes (203(h)/203(k) combo)
2. Fannie Mae Homestyle Renovation Loan
Best for: Primary, second homes, and investment properties
Benefits:
Conventional underwriting
Higher loan limits than FHA
Allows luxury upgrades (pools, outdoor kitchens, additions)
3. VA Renovation Loans
Best for: Eligible veterans & service members
Benefits:
Zero down payment options
No PMI
Repairs and upgrades rolled into a VA loan
(Perfect for older homes in Texas neighborhoods with strong appreciation.)
4. One-Time Close Construction Loans
Best for: Add-ons, major expansions, or total rebuilds
Benefits:
One closing
Finance the construction + permanent mortgage
No requalification needed after the project is done
(Powerful for homeowners who want to customize their forever home.)
📈 Why Renovation Loans Are Surging in 2026
Low inventory + aging homes = renovation demand exploding across Texas.
Homebuyers are learning that the perfect home isn’t found — it’s built.
For investors, renovation financing allows them to buy distressed assets, improve them, and boost equity quickly.
With the right mortgage structure, your project can become more affordable, more strategic, and more profitable.
🔧 What You Can Use Renovation Loans For
Kitchen & bath remodels
Roof replacement
HVAC, plumbing & electrical
Foundation repair
Room additions
Garage conversions
ADUs / guest houses
Full rebuilds after damage
Energy-efficiency upgrades
Structural improvements
If it improves the property — there’s likely a loan for it.
💡 Pro Tip: Work With a Broker, Not a Bank
Banks only offer their renovation loan.
Mortgage brokers like Medallion Funds offer all major renovation loan types — plus private investors for unique scenarios.
That means:
✔ You get better pricing
✔ Faster closings
✔ More flexibility
✔ A true side-by-side comparison
✔ A partner who guides you through contractor bids, draws, and paperwork
🏁 Final Takeaway
Renovation loans help buyers and homeowners build wealth, increase equity, and customize their home without draining their savings. Whether you’re renovating a starter home, expanding for a growing family, or rebuilding after a disaster — the right financing turns big ideas into real results.
If you want a personalized renovation loan strategy, I’m here to help.
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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 💰
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