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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📊 Understanding Debt Yield: The Key Metric Every Lender Watches 👀

💸 What Is Debt Yield & Why It Matters in CRE Financing 🏢

Bill Rapp, Commercial Mortgage Broker

October 23, 2025•3 min read

💸 What Is Debt Yield & Why It Matters in CRE Financing 🏢

📊 Understanding Debt Yield: The Key Metric Every Lender Watches 👀

💡 Introduction

In commercial real estate (CRE) lending, few metrics carry as much weight as debt yield. Whether you’re an investor seeking financing or a broker structuring deals, understanding this metric is essential. Lenders rely on it to gauge the true risk of a loan — independent of market volatility or property appraisals.

🔍 What Is Debt Yield?

Debt yield is a measure of a property’s net operating income (NOI) relative to the total loan amount. It shows how quickly a lender can recoup their investment if they were to take ownership of the property.

Formula:

Example:
If a property generates $1,000,000 in NOI and the loan amount is $10,000,000, the debt yield is 10%.

This means that — ignoring all other factors — the lender would earn a 10% return on their investment from the property’s income alone.

💰 Why Do Lenders Care About Debt Yield?

Debt yield gives lenders a pure measure of risk. Unlike loan-to-value (LTV) or debt service coverage ratio (DSCR), it’s not influenced by appraisals or interest rates.

Here’s why lenders love it:

1.Objective Risk Assessment:
Debt yield focuses solely on the property’s income, providing a clear view of financial stability.

2.Market-Neutral Metric:
It doesn’t depend on changing property values or cap rates — making it consistent in volatile markets.

3.Default Recovery Insight:
A higher debt yield means lenders could recover their investment faster in a foreclosure situation.

4.Regulatory Benchmark:
Many lenders set minimum debt yield requirements (8–10%) for CRE loans, ensuring the property can sustain performance through downturns.

📈 Typical Debt Yield Benchmarks

·Conservative lenders (banks, life companies): 10–12% minimum

·Bridge or private lenders: 8–9% acceptable

·High leverage or value-add projects: May drop to 7–8% depending on exit plan

Debt yield requirements tighten as market uncertainty rises, which is why strong income-producing properties attract better financing terms.

🧩 Debt Yield vs. DSCR: What’s the Difference?

While both measure loan safety, DSCR focuses on monthly cash flow coverage (NOI ÷ Debt Service), while Debt Yield focuses on overall loan exposure (NOI ÷ Loan Amount).
Lenders use both to cross-check a deal’s health, but if one metric tells the truth in turbulent times — it’s debt yield.

🏦 The Medallion Funds Advantage

At Medallion Funds, we understand what lenders are really looking for. Our team structures deals to meet or exceed debt yield and DSCR thresholds — giving you access to better rates, higher leverage, and faster approvals across 600+ lenders.

📅 Schedule a strategy call today to see how we can optimize your next deal.
🔗 https://billrapponline.com

✅ Conclusion

Debt yield might sound like a technical metric, but it’s the heartbeat of every commercial real estate loan. By mastering it, investors and brokers alike can position their deals with confidence — and speak the language lenders respect most: risk-adjusted return.

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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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