Blog | Archives for October 2019

5 Tips For A Faster Mortgage Process

By Southern Trust Mortgage
October 28, 2019

Whether you’re buying a new home or refinancing your current one, the mortgage process is at times both exciting and stressful. For that reason, many applicants are interested in making the process go as fast as possible, and who can blame them? While restrictions for how quickly a loan can close are in place, borrowers like you can help expedite the process by minding a few strategic details. Below are five tips on how you can make the process go quicker and more smoothly.

1. Apply online.

As internet accessibility has increased and improved throughout the world, more and more mortgage lenders are making the application process available through online means. While in-person applications with a lender are still an option whether you’re purchasing or refinancing your home, many people are turning to online options to apply for mortgages. At Southern Trust Mortgage, we offer a mobile application called STM Connect that acts as a home loan companion. Among many other valuable features, you can also apply for a mortgage directly through the app itself. To learn more, visit southerntrust.com/stm-connect

2. When you’re ready to apply, gather your important documents, and provide additional requested documentation quickly.

Among other loan criteria that must be met, in order to approve your loan, your lender will ask to verify your employment and your income. To do this, they will ask you to provide documentation, usually in the form of W2s, pay stubs, bank statements, and occasionally a copy of your tax returns. In order to keep your loan moving quickly through the process, have the necessary items on hand when you apply.

Occasionally, a lender will ask you for additional information to support your eligibility for a loan. If you are asked to provide further documentation, attempt to do so quickly, so as not to slow down the processing of your mortgage.

3. Improve your credit score and reduce your debt-to-income ratio before you apply.

When you apply for your loan, one of the first things your lender will do is order a credit score report. Every loan program has a minimum acceptable credit score to qualify, though the minimum varies between loan types. In order to qualify for a mortgage with the best rates, you will need a good credit score, and one way you can boost your credit score is by improving your debt-to-income ratio. In most cases, paying down unsecured revolving debt to 30% of their limits can not only improve your debt to income ratio, but also improve your credit scores.

If your credit score is less-than-stellar and you’d like to improve it, Southern Trust Mortgage has a credit specialist on hand to help you.

4. Avoid making large purchases until after the mortgage process is complete.

Once you’ve begun the mortgage process, you should avoid all major purchases until your loan is closed. For example, you may be tempted to purchase new furniture for your home while your loan is in process with your lender, avoid doing so until after your loan is funded as a purchase that depletes a good portion of your reserves or that adds a new debt to your credit can affect whether you loan can close on time.

5. Work with an experienced lender.

It has never been easier to find a mortgage lender, with endless options being made available to you just through a simple google search. As easy as it is to find a company, finding a mortgage company with experience requires a little more discernment. As a customer, an experienced loan officer and mortgage company can offer you insight as to what the best mortgage for you will be; with their expertise, you can rest assured knowing that their suggestions are backed by years of knowledge acquired through assisting borrowers just like you. Also, their guidance can help you avoid missteps in the mortgage process that would potentially slow down your loan.

At Southern Trust Mortgage, we have been helping families with their homeownership goals since 1998. Contact us today and let us help make home happen for you.

Blog | Archives for October 2019

Five Ways To Find A Good Real Estate Agent

By Southern Trust Mortgage
October 21, 2019

As fun as cruising listings on Zillow can be, chances are you’ll want to work with a real estate agent when you are ready to buy a home. Even though real estate transactions between just the seller and the borrower can take place, it’s usually better to involve a real estate professional in your purchase. When you work with an agent, he or she advocates on your behalf to make sure you are getting the best deal on your house. They start by advising you on what a good offer for the house would be, then negotiate your contract with the seller and their agent (if they have one). Your ideal real estate agent will have knowledge of the area, current sales trends, and what to look for (or run away from) when browsing homes.

So how do you find a good real estate agent? Here are a few ways you can narrow down your search.

1. Before you seek out a real estate agent – talk to a lender.

Although you may want to choose your real estate agent and start shopping as soon as possible, speaking with a lender and getting pre-approved for a loan amount will help your agent during the shopping process. At Southern Trust Mortgage, we offer Priority Approval, which is a true credit approval given to eligible borrowers. The approval is issued without requiring a property, so you can shop with certainty, knowing the exact loan amount for which you qualify.

2. Ask your friends and family for a referral.

There’s a good chance someone you know has purchased a home in your area within the past few years. Use this to your advantage by asking for recommendations from your friends and family. You can usually gather up a handful of possible agents this way and compare the experiences of your friends and family against online reviews.

3. Speak with a few agents before settling on one.

It’s not out of the question to informally interview multiple candidates before deciding if an agent is the right one for you. Interviewing an agent before you agree to work with them allows you the chance to learn more about how they work, their method and effectiveness in communicating, and their availability.

4. Decide how you will communicate with the agent ahead of time.

Do you want to work with an individual, or someone associated with a larger team? Do you want to communicate strictly by email, or do you prefer to handle business via phone or text? While a good real estate agent can make you feel like you’re their only client, they are likely juggling several cases at once, and so their styles of communicating may vary. Figuring out how, when, and how often you will communicate with your agent (and they with you) will help them better meet and manage your expectations during the buying process.

5. Make the right choice for you.

As referenced above, referrals from friends and family is a great starting point in your search for a real estate agent. It’s important to note, however, that since every person (and every purchase) is different, just because something worked for them does not automatically mean it will be the right fit for you. It’s important to find an agent that makes you feel confident, informed, and assured while purchasing your home, even if that means going with someone else.

It may take several attempts to land on an agent that meets all of your needs, but rest assured that with research and diligence, you’ll find the perfect real estate agent for you.

Blog | Archives for October 2019

Ten Ways To Protect Your Home During Hurricane Season

By Southern Trust Mortgage
October 14, 2019

If you live in a coastal town or city, you’re probably familiar with the feelings of dread and anxiety that arise when hurricane landfall is forecast for your town. While nothing can alleviate all of the anxiousness, preparing your house (and yourself!) to the best of your ability can help you keep a level head whether you decide to ride out the storm or if you’re asked to evacuate. Below we’ve compiled a list of ten ways you can best keep your house, your belongings, and yourself safe during a hurricane.

1. Purchase flood insurance.

If you live in a coastal town that is frequently at-risk from hurricanes, one of the best things you can do to protect your investment in your home is purchasing a flood insurance policy. Flood insurance policies require 30 days to go into effect following the date of purchase, so it’s important to buy your policy well before a hurricane strikes. Policies must be renewed annually.

2. Make sure all windows and doors are tightly fitted to avoid water damage and flooding.

Since hurricanes bring stronger than usual wind gusts and rain, it’s important to make sure the entries of your home can stand up to the storm. Examine doors and windows; for anything that doesn’t close flush, you can add self-adhesive weather-stripping as necessary to assure a tight seal.

3. Take photos of your house and belongings before the storm comes.

In the event that you need to file a claim, the insurance company will need evidence of the damage sustained to your property. It’s standard to provide this evidence through photographs, and it’s wise to have photos of your property and belongings before the damage occurred as well as after in order to better support your claim.

4. Take inventory of your belongings.

While you’re taking the photographs, spare some time to take inventory of your belongings. Depending on the severity of the storm, decide what you would like to move to a higher level in the house or to take with you in case you need to evacuate.

5. Secure all loose items outside of your house.

While anything that can be moved inside for safety should be, this is not feasible for larger items like grills, play equipment, or some yard tools. Large items should be pushed against your house as close as possible to cut down on the wind’s ability to move it, and if possible, tie or weigh objects down.

6. Invest in sandbags.

Sandbags remain a common choice for flood prevention. When stacked two feet high, sandbag barriers are very effective at keeping water out during storm surge. Being quite heavy, they can also be used to secure items in your yard or used to hold shed or screen doors closed.

7. Trim trees and bushes on your property to reduce damage from falling limbs or flying debris.

To help prevent damage to your roof, siding, or windows, examine the trees and bushes on your property for loose or weakened branches. Any branches that seem particularly weak and prone to breaking off should be trimmed back.

8. Board up your windows.

Contrary to popular belief, taping your windows with masking or duct tape will not prevent them from breaking. If anything, it can alter the break pattern of your glass and make the shards larger or more dangerous. The only way to truly protect glass windows during a hurricane is to board them up. Storm shutters fit onto your windows and can be reused yearly, although plywood and nails will do just as well in a pinch.

9. Move your vehicles to higher ground.

It’s becoming more common in coastal cities to offer up multi-level public parking garages as a place for people to keep their cars if they fear flooding. This is a great way to reduce the risk of floodwaters damaging your vehicle, but for many people it is not a practical solution, if it’s an option at all. To reduce the risk of damage, you should, at the very least, move your vehicles off the road (where water accumulates most thanks to public drain systems), and ideally onto a driveway with a little elevation.

10. Keep important documents in gallon plastic storage bags.

Having all your necessary documentation in one place could come in handy in the days following a hurricane. Into a few gallon bags, put your proof of flood insurance, photo IDs, birth certificates, social security cards, and proof of health insurance. Label the bag clearly and return the documents to their usual storage as soon as you can.

Southern Trust Mortgage wishes you a safe hurricane season!

Blog | Archives for October 2019

7 Fall Decorating Tips

By Southern Trust Mortgage
October 7, 2019

The heat waves of summer are finally behind us, and the chill in the air deepens by the day. Autumn is finally here! Below we’ve gathered our favorite decorating tips to help you celebrate the changing of the seasons.

1. Purchase a fall-themed wreath (or update an old one).

Wreaths are one of the easiest ways to make your home appear festive, with some homeowners choosing to display seasonal wreaths on their front doors no matter the time of year. Autumnal wreaths can be found in many stores in every size and color imaginable. Perhaps you already own an autumn-themed wreath. Consider giving it just a handful of upgrades to make it that much more ready for the season. Sprigs of faux cranberries purchased from a craft store brighten up old wreaths with a warm burst of red. Miniature cinnamon brooms, also found in craft stores, present a pleasant aroma to your guests from the front door when tucked strategically into the wreath.

2. Spruce up the dining area with a new table runner.

With table cloths nowadays being reserved for special occasions and holidays, many people favor a bare tabletop when decorating their dining room for everyday use, but there is a way to keep the visual of the bare tabletop while adding just a touch of color and elegance through the use of a table runner. Purchase a table runner in fall colors, red, gold, yellow, or a combination of the three, and place a neutral centerpiece (such as a glass vase filled with pine cones) on top.

3. Swap out light-colored candles for darker hues.

Candles are available in just about every color you can imagine, so why not take this opportunity to experiment with the darker, richer end of the spectrum? Deep red candles in gold candlesticks remain a classic and striking option, and combinations of pillar candles and votives in reds, plums, and golds make a statement when placed on a platter and used as a centerpiece. Keep the color palette warm and you really can’t go wrong!

4. Reinvigorate your floral arrangements by incorporating fall foliage.

Stalks and strands of autumnal leaves in the tell-tale orange, red, and brown are readily available in nature at this time of year! If you want a longer lasting option, however, faux picks are available for purchase at craft stores and act as perfect, season-appropriate transitions to existing floral arrangements. The hues of the autumn leaves complement most colors, so no matter your existing arrangements or centerpieces, the foliage and flowers will look lovely together!

5. Make your front porch festive with a display of ceramic or lighted pumpkins.

As fun as jack-o-lanterns are, they unfortunately don’t keep for very long, with lanterns made from the healthiest pumpkins lasting only five to ten days. Even if you don’t carve the pumpkin after your visit to the pumpkin patch the chance it will rot before the season ends is high, thanks to the fluctuation of temperature from day to night and the exposure to elements during the autumn. To save yourself the hassle of cleaning up a pumpkin-y mess, think about buying fake pumpkins for your outdoor display. Ceramic holds up well in all manner of weather, and there are even lighted options. Who said lighted displays were just for Christmas?

6. Repurpose mason jars into rustic vases or lanterns.

Whether you have jars saved from previous purchases or track down some unused ones yourself, mason jars can be used to add a farmhouse touch that is very on-trend for this season. As a vessel, mason jars are incredibly versatile and hardy, meaning you can use them as decoration inside or outside your home. Some options for how you decorate the jars include wrapping in twine, filling with battery-operated twinkle lights, or painting in autumnal colors using chalk or milk paint and using the jar to hold colorful flowers like marigolds.

7. Purchase a potted mum plant for a pop of seasonal color.

One of the easiest tips of all is to purchase a mum to keep on display on your porch, patio, or in your window. Mums are a popular plant choice this time of year, so sought after that even most grocery stores carry them for purchase during the month of September. The flowers come in a variety of colors and you can count on them flowering well with proper care.

Southern Trust Mortgage would like to wish you and your family a fine Fall season!

Blog | Archives for October 2019

14 First-Time Home Buyer Mistakes To Avoid In 2019

By Southern Trust Mortgage
October 3, 2019

Buying a home is complicated and that’s doubly true for first-time homebuyers. It’s easy to make a tiny mistake that has big consequences, ranging from costing you a ton of money to having to set your efforts back several months. Here are fourteen common mistakes that you should keep in mind, along with how to avoid them.

1: Waiting to apply for a mortgage

One of the fastest and easiest mistakes a first-time home buyer can make is to shop around for homes and seek out a mortgage later. This may seem like a natural course of action, but it can lull you into a false sense of security about your finances, not to mention that it can lock you out of great homes that you might have been able to snag.

The simple fact of the matter is that you need to see a lender in order to see what kind of mortgage you can get. You may think you can estimate on your own, but you may have a number of unique factors that may increase or decrease how much a mortgage lender is willing to give you. The last thing you want is to find the perfect home, assume it’s completely in your price range, then visit a mortgage lender and find out that they simply won’t finance you for that amount.

The other big problem is that applying for a home mortgage can take a while. If you find a home that you love, but the competition is fierce and you haven’t applied for a mortgage yet, then it might be as good as gone. If you aren’t coming to the table with your ducks in a row, then the seller probably won’t wait around for you to go through the application process, especially not if they’re trying to get rid of the home quickly.

2: Limiting yourself to one mortgage lender

Just as with buying anything, it can be tempting to go with a first offer that sounds great. However, if you don’t at least explore your options and get a feeling for what different mortgage lenders offer, you could be missing out on a huge chunk of savings. This can take the form of a lower interest rate, but don’t forget about all the hidden costs and fees that can accompany some mortgages.

Ideally, you want to get in touch with several mortgage lenders to get an idea of your options. Mortgage brokers that will shop around for you are one option, but keep in mind that they might not get you the best deal possible. They might opt for a mortgage that personally makes them more money on the commission rather than what would result in the most savings possible for you, the customer, in the long run.

3: Exceeding your budget

Not buying outside your budget may seem like common sense, but it still causes problems for lots of first-time home buyers. What can seem like a home that’s just a tiny bit out of your price range can quickly spiral into a whole host of other problems. To start with, it means you’re spending a bigger chunk of your income on your home, leaving less room for bills, entertainment, and emergencies.

Then, you also need to consider potential developments in the future. If the housing market changes, then your home may lose a significant amount of value. It may be harder to sell your home, which can be a problem especially if you’ve planned out your future to that extent. Furthermore, if you do encounter some financial hardships in the future such as losing your job, you will have less of a safety net compared to if you had picked a more affordable home.

One trick is to look more at how your payday gets split up rather than how many hundreds of thousands a mortgage lender will give you. It’s hard to wrap your head around the subtle details when it comes to massive amounts of money and a few tens of thousands in either direction can seem irrelevant, but when you break down how much you’d spend each month on paying the mortgage off, you can get a much better idea of your situation.

4: Rushing the process

Trying to cram and sprint through the process is one of the worst moves you can make. When you’re dealing with an amount of money as large as a mortgage, you need to make sure that you consider every possible angle.

For starters, you want to take some time to gauge your financial situation, where the market is, your chances of getting a good mortgage, and any other additional factors. If you’re lacking in one area and think it might improve in the near future (for example, if you think you’ll get a promotion soon), then it can pay hugely to delay your home search until then. If you’ve got poor credit, work on raising that before anything else. The better terms you can get on your mortgage, the more you can save on what will probably be one of your biggest annual expenditures going forward.

If you get caught up in buying a home and then rush to get a mortgage, you’re not going to have as much control over the terms. You won’t be able to get mortgages that have a long application process, plus you simply might not have the time necessary to browse and compare options. You also won’t have the ability to wait out any temporary fluctuations in the market that might be driving interest rates up for the time being.

5: Spending your savings

It’s true that securing a home and mortgage can take a chunk of money, but you shouldn’t be satisfied with the idea of spending all your savings on the down payment. Even disregarding the poor idea of tapping into retirement funds, you don’t want to drain your bank account just to secure the home of your dreams. You need a cushion in case something goes wrong.

One of the main reasons why first-time homebuyers are tempted to spend so much is that putting down 20% can waive the need for mortgage insurance. This can save some money in the long run, but if you’re using up all your immediate funds to get there, you’re making a big mistake. If something unexpected does pop up, whether it’s a big medical bill or a car breaking down, the costs could easily balloon past whatever savings you may have built up. You also need to consider the psychological cost of just scraping by in order to save money down the road. Is the stress worth it?

6: Excessive credit usage

One easy error that many first-time homebuyers make is to assume that they only need to pass one credit check from their lender. The truth is that there will be multiple credit checks, including one at the end of the application process and right before approval. This means that not only should you avoid opening up new lines of credit before you apply for a mortgage, but you also shouldn’t apply for anything during the process.

This means that if you really need to get a new credit card, you shouldn’t put it off until after you start the mortgage process. You should open it beforehand, then not open anything up after the application starts. Pay off your existing debts, make your monthly payments, and thereby assure your lender that you will pay off your mortgage.

7: Getting tunnel vision

It can be easy for first-time homebuyers to get caught up in the specifics of a home. If you’ve been looking for months and finally find a home that has the perfect room layout, flooring, and yard, then it’s all too easy to ignore other crucial factors like the neighborhood and school/store/employment proximity.

In reality, what you want to do is prioritize the location of your home over what it actually contains. If you plan on living there for a while, you can always expand or renovation, but you can’t reliably expect new shops, schools, or employment opportunities to open up closer to your house.

It can be frustrating, but waiting a little longer and searching for a home that meets your geographical needs is the best route.

8: Making impulsive decisions

When shopping for homes, it’s easy to fixate, but it’s also easy to make decisions driven purely by emotion. After months of fruitless searching, the lure of a home that looks great at first glance only becomes more appealing. However, buying a house is also one of the biggest financial decisions you will make in your life. You need to make sure that you have all the facts before you commit.

When you do set a budget, try as hard as you can to stick to it. Give yourself a bit of time to evaluate each house that pops up, don’t go into a buying frenzy because there’s a chance the home might get snatched up.

9: Misunderstanding down payments

One common myth is that home buyers absolutely need to put 20% down on a home. While that 20% does waive the need for mortgage insurance, it’s really not as common as you might think. It’s more common to put down around half of that.

The biggest problem with thinking you need 20% is actually getting that 20%. It can take years to scrounge that extra money up, which can put you in a poor position to take advantage of favorable market trends.

The second biggest problem with spending 20% is that you won’t have that money in the future. This sounds obvious, but 20% of a home can be a huge amount of money, depleting your emergency funds and putting you in a poor position to deal with other problems that might crop up in the future.

10: Holding out for the perfect house

The huge significance of buying a home can make it seem like nothing but the perfect fit will suffice, but that’s a surefire way for a first-time homebuyer to miss out on a ton of great homes. Remember that you aren’t necessarily searching for something that will last the rest of your life, you’re searching for a good foundation for the rest of your life. If you do choose to live in the house for decades, you can always expand the house, renovate, or refurnish.

The other problem with searching for a unicorn of a home is that it will dramatically increase the length of the process. A search that might only take a few months otherwise can turn into year after year of looking into potential candidates. This can quickly become mentally exhausting as you spend your free time weekend after weekend poring over new listings and checking to see if the price on some good choices has dropped. In turn, this can make you much more susceptible to making regrettable decisions and throwing in the towel for any old home.

11: Not exploring loan options

While conventional loans are one option, they certainly aren’t the only options for first-time homebuyers. Consider other types of loans (such as government-insured loans) that might give you the extra push you need to make your dream home a reality. Three of your best options are VA loans, USDA loans, and FHA loans.

VA loans come from the Department of Veterans Affairs and are designed for eligible service members. They don’t need a down payment on your part, making them one of the best options if you don’t have enough in savings for other loans. These loans may require a funding fee, but it’s generally a lot lower than a down payment. VA loans also have a limit on lender fees, which means that you can’t get taken by surprise by a swarm of tiny fees.

USDA loans come from the Department of Agriculture and help first-time homebuyers in rural areas. These loans tend to have limits on income since they are meant to help borrowers with lower incomes. In some cases, USDA loans require down payments, but not always.

FHA loans are from the Federal Housing Administration and require a down payment, but only a small one: 3.5%. These loans also require a 580 credit score, which is low enough that many determined first-time homebuyers can meet it with a little preparation. However, FHA loans do require mortgage insurance, so be aware of that.

12: Ignoring minor costs that add up

One of the biggest pitfalls of buying a home is all of the minor costs that quickly add up. On top of the fees associated with a broker and actually acquiring the home, there are also a ton of minor recurring fees that can quickly add up to hundreds or thousands of dollars per year. From specialized types of home insurance to repairs, maintenance, and property taxes, there are a lot of little ways that your home can drain your paycheck if you’re not paying close attention before buying.

The best way to minimize the damage is to browse your options before you buy. Compare insurance companies, determine whether certain kinds of home insurance are mandatory in your area, figure out if you can pay down enough to avoid mortgage insurance, and calculate your income with these new factors in mind. It may end up requiring that you look for a home with a smaller price tag, but that’s much easier than buying a more expensive home and later finding out that you can’t afford it at all.

13: Improperly using gifts

Getting a little help from family members and close friends is common with buying a new home, but it may surprise you to find out that there’s a specific way to go about it. Gifted money is subject to certain legal restrictions that you might not be aware of. On top of that, if you don’t end up getting the gifted money and you’re already in the middle of the home buying process, it can tank the whole thing.

14: Missing out on a rebate

Homebuyer rebates are a special type of rebate you can apply for and get up to 1% of the home’s sale price. They don’t work in every state, so check to make sure that your state is among the forty that do allow them. In order to get the rebate, you should bring it up to your agent.