⚠️ Top 10 Mortgage Mistakes Sioux Falls Buyers Should Avoid

By Jeff Younger — Borrow Smart Mortgage Services

Introduction

Buying a home in Sioux Falls, South Dakota is exciting — but one wrong move during the mortgage process can cost you time, money, or even the home you want. Most mistakes happen simply because buyers don’t know what lenders look for or how local market conditions work.

As a local mortgage expert with Borrow Smart Mortgage Services, here are the top 10 mortgage mistakes I see buyers make in Sioux Falls — and how you can avoid them.

1. Not Getting Pre-Approved Before House Hunting

Many buyers start touring homes before knowing what they qualify for.
In a competitive market like Sioux Falls, you risk losing the home to someone who is already pre-approved.

Avoid it: Get a full pre-approval, not just a pre-qualification.

2. Making Big Purchases Before Closing

Buying a car, furniture, appliances — even opening a new credit card — can change your debt-to-income ratio and kill your loan.

Avoid it: Wait until after closing before making major purchases.

3. Not Comparing Loan Options

Some buyers choose the first lender they talk to or don’t explore all loan types.

Avoid it: Compare FHA, VA, Conventional, USDA, and SDHDA options.
A mortgage broker (like me) shops several lenders for you.

4. Ignoring Your Credit Score

Low credit can increase your interest rate or disqualify you from certain loans.

Avoid it:

• Pay bills on time

• Avoid new credit

• Don’t close old accounts

• Dispute errors early

5. Skipping Local Expertise

Online lenders don’t understand Sioux Falls market trends, local appraisals, or SDHDA programs.

Avoid it: Choose a local Sioux Falls mortgage broker who knows neighborhood values and local underwriting preferences.

6. Forgetting About Closing Costs

Many buyers only focus on the down payment, but closing costs can be another 2%–5% of the loan amount.

Avoid it: Get a full loan estimate upfront — and ask about down payment assistance options in South Dakota.

7. Changing Jobs During the Loan Process

Even a better-paying job can delay or derail your mortgage.

Avoid it: Talk to your lender before making any employment changes.

8. Not Saving Enough for Maintenance or Emergencies

Owning a home includes repairs, upkeep, and unexpected costs.

Avoid it: Keep a savings buffer beyond your down payment.

9. Underestimating the Importance of the Appraisal

If your home doesn’t appraise at value, your loan could be denied or delayed.

Avoid it: Work with an experienced local agent and lender who understand recent Sioux Falls sales data.

10. Not Asking Questions or Understanding the Loan Terms

Some buyers sign documents without fully understanding interest rates, PMI, escrow accounts, or loan structure.

Avoid it: Always ask your loan officer to explain anything that isn’t clear — that’s what we’re here for.

Final Thoughts

Avoiding these common mortgage mistakes can help you secure a smoother, faster homebuying experience in Sioux Falls. I’m here to guide you through every step — from pre-approval to closing — so you can buy with confidence and avoid the pitfalls most buyers don’t even know exist.

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