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
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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.
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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.
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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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💰 Master Your Financials: What Lenders Look For in a Borrower 🏦
💰 Master Your Financials: What Lenders Look For in a Borrower 🏦
📊 How to Build a Strong Personal Financial Statement That Wins Loan Approvals 💼
When it comes to securing a mortgage or commercial loan, your Personal Financial Statement (PFS) is your financial résumé — and lenders analyze it carefully to determine your credibility and capacity to repay debt. Whether you’re applying for a residential mortgage, a DSCR investment loan, or a commercial real estate loan, knowing what lenders want in your PFS can make or break your approval odds.
💧 Liquidity — Cash Is Confidence
Lenders love liquidity because it shows your ability to handle the unexpected. Liquid assets like checking, savings, or marketable securities give underwriters confidence that you can manage your obligations even if income slows. For commercial borrowers, maintaining at least 6–12 months of reserves can strengthen your position significantly.
💵 Net Worth — Your Long-Term Strength
Your net worth represents the total value of your assets minus liabilities. Lenders use it to assess long-term stability and financial maturity. A strong net worth signals you’ve built assets responsibly, giving lenders assurance that you’re not overleveraged. This is especially vital in commercial and investor lending, where asset protection and leverage management are key.
💼 Personal Income — The Backbone of Repayment
Even with great liquidity, lenders still evaluate your personal income to confirm consistent cash flow. For wage earners, this means W-2s and pay stubs; for entrepreneurs and investors, it includes tax returns, K-1s, or profit-and-loss statements. Lenders compare this against your debt obligations to calculate Debt-to-Income (DTI) or Debt Service Coverage Ratio (DSCR).
📈 Other Factors Lenders Review
·Credit history: A track record of timely payments builds trust.
·Liabilities: Lenders analyze outstanding loans and contingent liabilities.
·Contingent income: Rental or investment income helps strengthen your financial picture.
🏁 Final Takeaway
A well-prepared personal financial statement doesn’t just get you approved — it gets you better terms. The clearer and more transparent your financials, the stronger your negotiating power.
👉 At Medallion Funds, we help borrowers present clean, credible financial profiles to unlock more favorable loan options and faster approvals.
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