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
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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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💼 LLC vs. Personal Name: The Smartest Way to Title Your Investment Property in 2026 🏠
💼 LLC vs. Personal Name: The Smartest Way to Title Your Investment Property in 2026 🏠
🏢 Should You Buy Real Estate in an LLC or Your Personal Name? Investors Need to Know This ⚖️
💼 LLC vs. Personal Name: How Investors Should Title Their Properties When Financing
Choosing whether to title your investment property in an LLC or your personal name is one of the most misunderstood parts of real estate investing. And it matters — not just for asset protection, but also for financing, rates, approvals, taxes, and long-term portfolio planning.
As a mortgage broker who works daily with investors across Texas and the U.S., I can tell you this:
There is no one-size-fits-all strategy.
But there is a smart way to structure your deals depending on your goals.
Let’s break down exactly how investors should think about titling their properties when financing in 2026 and beyond.
🏢 Buying in Your Personal Name: Pros, Cons & When It Makes Sense
✅ Advantages
• Lower interest rates
Conventional and DSCR lenders typically offer better pricing for loans closed in personal names.
• Easier approvals
Lenders can underwrite your credit score, tax returns, and income directly — often resulting in smoother approvals.
• Better long-term financing options
30-year fixed rates, lower DSCR minimums, and streamlined refinances are usually available.
❌ Disadvantages
• No liability protection
If something goes wrong at the property, you are legally exposed.
• Harder to assign later
Transferring title into an LLC after closing may trigger lender due-on-sale clauses (though many do not enforce this if payments remain current).
⭐ Best For:
• First-time investors
• Investors needing the best rate
• DSCR loan borrowers
• House hackers and small multi-unit buyers
🗂️ Buying in an LLC: Pros, Cons & When It Makes Sense
✅ Advantages
• Strong liability protection
Your personal assets stay insulated from tenant or property-related claims.
• Cleaner bookkeeping
LLCs make it easier to track expenses and manage multiple properties.
• Professional credibility
Banks, partners, and contractors often view LLC-owned real estate as more sophisticated.
❌ Disadvantages
• Higher interest rates
Commercial and LLC-titled loans can price higher than personal loans.
• Larger down payments
Many lenders require 20–30% down for LLC-held assets.
• More documents
Operating agreements, EIN, and organizational paperwork are typically required.
⭐ Best For:
• Investors with >2–3 rental properties
• BRRRR investors
• Partnerships
• Investors prioritizing asset protection
• Portfolio loans and blanket loans
⚖️ The Financing Truth Most Investors Don’t Know
Lenders prefer you close in your personal name — but you can often transfer the title into the LLC after closing.
This gives you the best of both worlds:
✔️ Lower rates
✔️ Easier financing
✔️ LLC protection (after the transfer)
✔️ Keep the loan in your personal name
Investors call this the “close personal, hold LLC” strategy, and it is one of the most efficient ways to build a portfolio.
🧠 How I Advise Investors at Medallion Funds
Every investor’s situation is different.
When we build a financing plan, we evaluate:
• Are you building a long-term portfolio?
• Do you need the lowest payment possible?
• Are you using DSCR, bank statement, or conventional financing?
• Are you planning to cash-out refinance later?
• Is asset protection or borrowing power more important today?
With the right strategy, you can finance in your personal name and build your liability protections around your LLCs at the same time.
🏁 Final Takeaway
If you want the best rates — close in your personal name.
If you want the best liability protection — hold in an LLC.
And with the right lender, you can do both.
If you want to structure your portfolio the smart way, reach out and I’ll walk you through options across DSCR, conventional, bank statement, and commercial loans.
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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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