June 2023

Unlocking Your Dream Home: 4 Tips for Achieving Home Affordability

By Southern Trust Mortgage
June 16, 2023

At Southern Trust Mortgage, we understand that owning a home is a significant milestone in life. However, the path to homeownership can sometimes feel daunting. That’s why this National Home Affordability Month we’re here to guide you through the process and offer valuable tips to make your dream home a reality. In this blog, we’ll explore four essential tips to help you achieve home affordability.

Let’s get started!

1. Establish a Budget

One of the fundamental steps toward achieving home affordability is setting a realistic budget. By establishing a budget, you gain a clear understanding of your financial capabilities and can determine how much you can comfortably spend on a home. Here’s a closer look at how to establish a budget effectively:

• Calculate your monthly income and expenses: Begin by evaluating your current financial situation. Consider your monthly income from all sources, including salaries, investments, and any additional income streams. Next, carefully analyze your monthly expenses, such as rent, utilities, groceries, transportation, debt payments, and discretionary spending. This thorough assessment will help you determine the amount of money you have available each month to allocate toward your mortgage payments.

• Prioritize savings and beef up emergency funds: A crucial aspect of budgeting for home affordability is setting aside funds for savings and building an emergency fund. Savings will contribute to your down payment, while an emergency fund will provide a safety net for unexpected expenses or financial setbacks. Aim to allocate a portion of your monthly budget towards these goals to ensure you’re prepared for the future.

• Account for additional costs: When establishing your budget, it’s important to consider all associated costs beyond the purchase price and mortgage payments. These additional expenses can include property taxes, insurance, utilities, maintenance, and potential homeowners’ association (HOA) fees. By factoring in these costs, you’ll have a more accurate picture of your overall financial obligations as a homeowner.

• Seek professional guidance: If you find budgeting challenging or need assistance, consider reaching out to a professional mortgage Loan Officer, such as the experts here at Southern Trust Mortgage! They can provide personalized guidance and help you create a budget that aligns with your specific financial circumstances and homeownership goals.

Remember, establishing a budget is not a one-time task. It requires regular review and adjustments as your financial situation evolves. By staying mindful of your budget and making informed financial decisions, you’ll be well on your way to achieving home affordability and turning your homeownership dreams into reality.

2. Save for a Down Payment

Saving for a down payment is an essential aspect of home affordability. A larger down payment can help you secure a more favorable mortgage rate and reduce your monthly mortgage payments. Here’s how you can save effectively:

• Set a savings goal: Determine the amount you’ll need for a down payment and set a realistic timeline to achieve your target.

• Automate your savings: Consider setting up automatic transfers from your checking account to a dedicated savings account. This way, you’ll consistently save without even thinking about it.

• Reduce expenses: Look for opportunities to cut back on non-essential spending. Small sacrifices today can make a significant difference in your down payment savings tomorrow.

3. Improve Your Credit Score

Your credit score plays a vital role in determining your mortgage eligibility and interest rates. At Southern Trust, we understand the importance of a strong credit score, which is why we have a dedicated Credit Specialist on board to assist you. Here are steps you can take, with expert guidance, to improve your credit score:

• Pay bills on time: Consistently paying your bills on time demonstrates financial responsibility and positively impacts your credit score. Our Credit Specialist can provide personalized advice on managing your payments effectively.

• Reduce debt: Our Credit Specialist can work with you to develop a strategic plan for reducing your outstanding debt. By paying off credit card balances and other loans, you can lower your debt levels and boost your creditworthiness.

• Maintain credit utilization: Keeping your credit utilization ratio below 30% is crucial. Our Credit Specialist can analyze your credit utilization and provide tailored strategies to help you maintain a healthy ratio.

• Correct errors on your credit report: Mistakes on your credit report can negatively impact your credit score. Our Credit Specialist will carefully review your credit report, identify any errors or discrepancies, and assist you in resolving them promptly.

• Establish positive credit history: If you have a limited credit history, our Credit Specialist can guide you on building a positive credit profile. This may involve opening a secured credit card or becoming an authorized user on someone else’s credit card.

By leveraging these credit tips, you can take proactive steps to improve your score and enhance your overall financial profile.

4. Consider All Costs

Beyond the purchase price and down payment, homeownership involves additional costs that are often overlooked. It’s essential to account for these expenses to ensure long-term affordability. Here are some costs to consider:

• Home inspections: Before finalizing a home purchase, investing in a thorough inspection can help identify potential issues and prevent costly surprises down the road.

• Closing costs: These fees include loan origination charges, title search fees, and other expenses associated with the closing process. Be prepared for these costs to avoid last-minute financial strain.

• Home maintenance: As a homeowner, you’ll be responsible for the upkeep of your property. Set aside a portion of your budget for routine maintenance, repairs, and upgrades.

You Got This!

Achieving home affordability is within your reach with the right knowledge and preparation. By establishing a budget, saving for a down payment, improving your credit score, and considering all costs associated with buying a home, you’ll be well on your way to the closing table.

Our team is committed to helping you achieve your dream of homeownership. Get in touch with one of our knowledgeable Loan Officers today and experience the Southern Trust difference!

5 Cost-Effective Ways to Pack for Your Move!

Pack Smart, Save Big.

By Southern Trust Mortgage
June 5, 2023

Moving is an opportune time to evaluate your belongings and declutter, ensuring that you only bring what truly matters to your new abode. By downsizing and purging items you no longer need or use, you can significantly reduce your moving expenses. Fewer possessions mean fewer packing supplies, fewer boxes, and ultimately, a lighter load to transport to your new home. Plus, selling or donating unwanted items can even generate some extra cash or charitable contributions, making the process rewarding on multiple levels.

Our team at Southern Trust Mortgage understands that the costs associated with moving can add up quickly, so we’ve compiled a list of practical and creative solutions to help you stay within your budget. By implementing these tips, you’ll not only save money but also optimize the efficiency of your packing, ensuring your belongings are well-protected during transit. So, let’s dive into the five cost-effective ways to pack for your move, making this exciting chapter of your life even more memorable and affordable.

1. Purge and Declutter

Moving is the perfect opportunity to take a closer look at your belongings and embark on a decluttering adventure. As you prepare for your new home, it’s the ideal time to evaluate what you truly need and let go of the items that no longer serve a purpose in your life. By purging and decluttering, not only will you create a more organized and efficient living space in your new home, but you’ll also save money during the moving process. With fewer items to pack and transport, you’ll require fewer packing supplies, boxes, and potentially even a smaller moving truck. Additionally, selling or donating unwanted items can provide a financial boost or help those in need, giving your decluttering efforts an even more meaningful impact. So roll up your sleeves, channel your inner minimalist, and let the purging begin!

2. Utilize Free Packing Supplies

When it comes to packing materials, there’s no need to break the bank. Look for free or low-cost packing supplies in your community. Local grocery stores, liquor stores, and bookstores often have spare boxes that they’re willing to give away. USPS even offers free boxes delivered to your doorstep. You can also ask friends and family if they have any packing materials they no longer need. Additionally, make use of items you already have, such as suitcases, laundry baskets, and bags, to pack your belongings.

3. Optimize Space

Efficiently using the available space in your moving boxes is crucial for minimizing the number of boxes required. Start by placing heavier items at the bottom and filling any gaps with soft items like clothing or towels. This not only maximizes space but also provides extra padding to protect your belongings during the move. You can also use vacuum-sealed bags to compress bulky clothing items, blankets, or linens, allowing you to fit more into each box.

4. Label and Organize

Properly labeling and organizing your belongings is like creating a roadmap for a successful move. Taking the time to label your boxes and organize them by room can save you precious time and money when you arrive at your new home. Imagine the convenience of easily locating your essentials without having to tear through every box in search of that one item you desperately need. By using color-coded labels or a numbering system, you can quickly identify the contents of each box and designate its destination room. This simple yet effective strategy not only streamlines the unpacking process but also ensures that fragile items receive the extra care they deserve. So grab those markers, unleash your inner organizational guru, and let the smooth and efficient unpacking experience unfold in your new home.

5. Seek Help from Friends and Family

Embrace the power of teamwork and turn your moving experience into a memorable bonding opportunity by seeking help from your friends and family. Moving doesn’t have to be a solo endeavor; reaching out to your loved ones for assistance can lighten the load both physically and financially. Gather your trusted circle and transform the packing process into a lively and fun-filled packing party. Not only will you get the job done faster, but you’ll also create lasting memories along the way. Show your appreciation by providing snacks and refreshments to keep everyone fueled and motivated. By enlisting the helping hands of your nearest and dearest, you can save on professional movers or labor services, allowing those saved funds to be put towards creating an inviting atmosphere in your new home. So rally your support team, crank up the music, and let the packing party commence!

Final Notes

Moving doesn’t have to drain your bank account. By implementing these five cost-effective packing strategies, you can save money and make your move more manageable. Our goal is to support you every step of the way, ensuring that your transition to your new home is both financially manageable and enjoyable. So go ahead, save some money, reduce your stress levels, and embark on this exciting journey to your new home with confidence. Happy moving!

Are you ready to start your homebuying journey? Connect with one of our skilled Southern Trust Loan Officers today!