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
.
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
.
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
.
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!
Blogs
The Top 5 Mortgage Mistakes to Avoid
Buying your first home can be both exciting and nerve-wracking at the same time. With so many things to consider and....
Mortgage Do and
Do not list
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....
Tips On How To Improve Your Credit Score
Let's talk about some ways you can improve your credit score! Your credit score is actually a big deal, and it can affect...
💣 Why SBA Loans Fail in Underwriting (And How to Avoid It) 🚫
💣 Why SBA Loans Fail in Underwriting (And How to Avoid It) 🚫
⚠️ SBA Loan Denied? The Real Reasons Deals Fall Apart 💼
Why SBA Deals Fail in Underwriting (And How to Get Approved)
“Most SBA loans don’t fail because of the business…
They fail because of how the deal is structured.”
If you’re a business owner, investor, or real estate borrower trying to secure SBA financing, understanding underwriting is the difference between closing and getting declined.
At Medallion Funds, we see it every day: strong deals that fall apart—not because they’re bad—but because they’re presented incorrectly.
Let’s break down exactly why SBA deals fail in underwriting—and how to position yours to win.
🔍 The SBA Underwriting Reality
SBA lenders don’t think like conventional banks.
They’re focused on three core pillars:
·Cash Flow (Primary)
·Risk Mitigation
·Borrower Strength
If your deal doesn’t clearly check these boxes, underwriting will stall—or worse, decline.
🚨 Top Reasons SBA Deals Fail
1. ❌ Insufficient Cash Flow (DSCR Issues)
The #1 killer of SBA deals is cash flow.
Lenders typically want:
·DSCR ≥ 1.25x
If your business (or property) can’t comfortably cover debt payments:
👉 The deal dies.
Common mistake:
·Overstating revenue
·Underestimating expenses
·Ignoring debt obligations
Fix:
·Normalize financials
·Add back legitimate expenses
·Stress-test projections
2. ❌ Weak or Inconsistent Financials
SBA underwriting is documentation-heavy.
Red flags:
·Declining revenue trends
·Inconsistent tax returns
·Large unexplained deposits
Underwriters think:
“If the story doesn’t match the numbers, it’s a no.”
Fix:
·Clean up financials before applying
·Align P&Ls, tax returns, and bank statements
·Be prepared to explain anomalies
3. ❌ Poor Deal Structure
This is where most borrowers lose.
Examples:
·Too much leverage
·Not enough equity injection
·Improper loan type selection (7(a) vs 504)
Reality:
👉 Structure beats rate. Every time.
Fix:
·Work with a broker who understands SBA structuring
·Choose the right product for your use case
·Align terms with exit strategy
4. ❌ Lack of Borrower Liquidity & Reserves
Even if the deal works on paper, lenders want to know:
👉 “Can this borrower survive a downturn?”
Red flags:
·No post-closing liquidity
·Minimal reserves
·High personal leverage
Fix:
·Maintain liquidity after closing
·Avoid draining all capital into the deal
·Show financial strength outside the business
5. ❌ Industry Risk & Experience Gaps
SBA lenders evaluate:
·Industry volatility
·Borrower experience
Example:
·First-time restaurant owner → higher risk
·Experienced operator → stronger profile
Fix:
·Partner with experienced operators
·Highlight transferable skills
·Provide a strong business plan
6. ❌ Incomplete or Disorganized Documentation
This is the silent killer.
Missing:
·Tax returns
·Personal financial statements
·Business plans
👉 Delays = doubt = decline
Fix:
·Submit a complete, organized package upfront
·Anticipate lender requests
·Move fast and stay responsive
🧠 The Real Insight: SBA Is a Story + Structure Game
Underwriting is not just numbers.
It’s a narrative backed by data.
Strong deals clearly answer:
·How does this loan get repaid?
·What happens if things go wrong?
·Why is this borrower the right operator?
💡 How to Get Your SBA Deal Approved
At Medallion Funds, we position deals to win by focusing on:
✔️ Proper deal structuring
✔️ Lender matching (600+ options)
✔️ Clean financial presentation
✔️ Risk mitigation strategies
✔️ Clear borrower story
📞 Final Thought
Most SBA denials are preventable.
If you’re applying for:
·SBA 7(a) loans
·SBA 504 loans
·Business acquisitions
·Owner-occupied real estate
👉 Strategy matters more than you think.
Work with a broker who understands underwriting—not just applications.
📞 Call to Action
If you're buying, refinancing, or structuring a commercial deal in the next 12 months:
Let’s build the deal the right way — before it ever hits underwriting.
Bill Rapp
Medallion Funds
🌐 https://billrapponline.com/
https://www.billrapponline.com/
https://findamortgagebroker.com/Profile/WilliamRappJr28883
https://billrapp.commloan.com/
https://billrapponline.com/financingfuturescre-houston-katy
https://houstoncommercialmortgage.com/
https://author.billrapponline.com
https://doctorvideo.billrapponline.com/
https://veteransvideo.billrapponline.com/
https://mortgageviking.billrapponline.com/
https://fha203h.billrapponline.com/
https://renovationvideo.billrapponline.com
https://medallionfunds.com/bill-rapp/
https://www.amazon.com/dp/B0F32Z5BH2
https://veed.cello.so/FOmzTty6oi9
https://buymeacoffee.com/vikingente3
https://creplaybookseries.billrapponline.com
https://creplaybook.billrapponline.com/
© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
10 Tips for First-Time Homebuyers
Buying your first home can be both exciting and nerve-wracking at the same time. With so many things to consider and....
How To Choose the Right Lender for You
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy
Refinancing youe loan and when to do it
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy
🧮 Renovation ROI Calculator
🛠️ Renovation ROI Calculator 💰
Copyright ©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/