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
.

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: Get pre-approved before house-hunting
.

DO: Consider your future plans

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: 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

DO: Have a good sense of humor

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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🚀 Texas Builders Face Rising Construction Costs: Financing Strategies That Still Work 💰

💵 Texas Construction Costs Are Surging — Here’s What Builders Need to Know 🚧

Bill Rapp, Commercial Mortgage Broker

November 14, 2025•3 min read

💵 Texas Construction Costs Are Surging — Here’s What Builders Need to Know 🚧

🚀 Texas Builders Face Rising Construction Costs: Financing Strategies That Still Work 💰

💵 What Rising Construction Costs Mean for Texas Builders

Construction costs across Texas are climbing—fast. From labor shortages to supply chain constraints, builders are feeling pressure on every line of the budget. Whether you're developing subdivisions, building custom homes, or taking on commercial projects, higher costs impact timelines, margins, loan qualification, and borrowing strategy.

As a mortgage broker with access to hundreds of construction, bridge, and permanent financing options, I see the downstream effects of these cost increases every day. The good news? Builders who understand how lenders underwrite rising costs can still thrive in this environment. Here’s how.

🏗 Why Construction Costs Are Rising in Texas

Texas is still one of the fastest-growing states in the country. That demand brings opportunity—and increased pressure on materials, labor, and land pricing.

Main drivers include:

·Material cost volatility (lumber, steel, concrete)

·Skilled labor shortages

·Higher land acquisition prices

·Insurance and regulatory increases

·Supply chain bottlenecks

·Higher interest rates affecting project carrying costs

Most builders now face 10–25% higher all-in costs vs. just a few years ago.

💰 How Higher Costs Impact Builder Financing

1. Loan Qualification Gets Tighter

Lenders scrutinize:

·Updated budgets

·Cost escalation cushions

·Contingency reserves

·Builder experience

·Borrower liquidity

Expect lenders to request stronger PFS/SREO documentation and higher liquidity buffers.

2. Appraisals Need Realistic Cost Projections

With construction costs fluctuating, appraisers rely heavily on:

·Verified material bids

·General contractor cost books

·Current market comparables

Inaccurate budgets can kill the deal faster than anything.

3. DSCR and Feasibility Matter More

For investment products (BTR, multifamily, spec builds), lenders are laser-focused on:

·Stabilized rents

·Operating expense ratios

·Local vacancy rates

·Cap rate trends

When costs rise, profit compression becomes the real risk.

4. Builders Must Use Better Loan Structures

Here’s what’s working for Texas builders right now:

✔ One-Time Close Construction Loans

Reduces rate risk, simplifies the process for owner-occupied builds.

✔ Construction-to-Perm Loans

Ideal for long-term rentals and BTR communities.

✔ Bridge Loans

Useful for covering cost overruns or delaying permanent financing until stabilization.

✔ Land + Vertical Build Packages

Combining both phases helps lock in better terms.

✔ Interest-Only Options

Lower monthly expenses during construction.

At Medallion Funds, we structure custom financing so builders retain margins even as costs rise.

🏦 What Builders Should Do to Protect Margins in 2025

🔹 Update Budgets Every 30 Days

Prices shift quickly—don’t rely on bids older than 60 days.

🔹 Add 10–20% Contingency

Lenders are expecting it. Investors appreciate it.

🔹 Lock in Material Contracts Early

Pricing stability can save margins.

🔹 Work With a Mortgage Broker Who Specializes in Construction Lending

A banker gives you one option.
A broker gives you hundreds.

🏁 Final Takeaway

Rising construction costs aren’t slowing Texas demand—but they are forcing builders to be smarter with budgeting, execution, and financing. With the right loan strategy, Texas builders can still scale, win projects, and stay profitable—no matter what the market throws their way.

If you’re a Texas builder needing construction financing, cost-overrun solutions, or better loan terms—Medallion Funds can help.

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Bill Rapp - Commercial & Residential Mortgage Broker

Whether you're a first-time homebuyer, a seasoned investor, or a business owner with ambitious plans, securing the right financing is crucial. At Medallion Funds, we take the guesswork out of mortgages, offering a comprehensive suite of residential and commercial loan options to fit your unique needs. Looking for Your Dream Home? We understand the excitement and challenges of navigating the residential real estate market. Our experienced mortgage brokers will guide you through every step, from pre-qualification to closing. We offer a variety of loan programs to suit your financial situation, including: • Fixed-rate mortgages: Offering stability with predictable monthly payments. • Adjustable-rate mortgages (ARMs): Providing competitive rates for a set period. • FHA loans: Making homeownership accessible with lower down payments. • VA loans: Rewarding veterans with attractive rates and flexible terms. Investing in Your Business Future? Growth often requires capital, and we can help you unlock the potential of your commercial property. Our brokers specialize in a wide range of commercial loan options, including: • Purchase loans: Financing the acquisition of new buildings or land. • Construction loans: Facilitating the development of your project. • Refinance loans: Restructuring your existing mortgage for better terms. • SBA loans: Providing access to government-backed financing for qualified businesses. The Medallion Funds Difference: We go beyond simply finding a loan. We take the time to understand your goals and develop a personalized strategy. Here's what sets us apart: • Expertise: Our brokers have a deep understanding of both residential and commercial lending. • Competitive Rates: We leverage our strong lender relationships to secure the best possible terms. • Streamlined Process: We handle the paperwork, keeping you informed every step of the way. • Exceptional Service: We're committed to providing you with a positive and stress-free experience. Ready to Take the First Step? Contact Medallion Funds today for a free consultation. Let's discuss your financing needs and help you achieve your dreams!

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