Credit Myths: Debunked

Your credit score plays a major role in determining whether you’ll be approved for a mortgage and what loan terms you’ll receive. Unfortunately, misinformation about credit can lead to unnecessary stress and poor financial decisions during your home-buying journey. Let’s clear up some common myths so you can move forward with confidence!

Myth #1: Student Loan Debt Will Prevent You from Getting a Mortgage

Many believe that having student loan debt automatically disqualifies them from homeownership. In reality, student loans are just one factor in the mortgage approval process. Lenders look at your debt-to-income (DTI) ratio, which compares your total monthly debt payments to your income. As long as you manage your student loans responsibly and maintain a reasonable DTI, homeownership is still within reach!

Myth #2: Checking Your Credit Score Lowers It

Some people avoid checking their credit because they fear it will hurt their score. The truth? Checking your own credit is considered a “soft inquiry” and has zero impact on your score. In fact, monitoring your credit regularly is a great way to catch potential issues early. On the other hand, a “hard inquiry”—such as when applying for a mortgage—can cause a small, temporary dip in your score, but this is normal and expected.

Myth #3: You Need a Perfect Credit Score to Qualify for a Mortgage

You don’t need an 800+ credit score to buy a home! While a higher score may help you secure better loan terms, some loan programs allow for as low as a 580 score. If you’re not sure where you stand, connect with an STM loan officer to explore your options and see what’s possible.

Myth #4: Closing Old Credit Cards Boosts Your Score

It may seem logical to close unused credit cards, but doing so can actually hurt your credit score. One key factor in credit scoring is the length of your credit history. Closing older accounts can shorten your average credit age and reduce your available credit, which may lower your score. If a card has no annual fee, it’s often best to keep it open to maintain a strong credit profile.

Myth #5: Paying Off Your Credit Card in Full Every Month Is the Only Way to Build Credit

Paying your balance in full each month is a smart financial habit, but it’s not the only way to improve your credit. The key factor is credit utilization, which refers to how much of your available credit you’re using. Ideally, you should keep this below 30%. Even if you carry a small balance, as long as you make on-time payments, your credit score can still thrive.

At Southern Trust Mortgage, we know that navigating credit and mortgage financing can feel overwhelming—but you don’t have to do it alone. Our team is here to provide expert guidance and personalized solutions to help you achieve homeownership.

Ready to make home happen?

Contact your trusted STM Loan Officer today, and let’s unlock the door to your new home—together!

Top Reasons People Moved in 2024

If you’re in the housing industry, planning a move, or considering selling your home, understanding why people moved in 2024 can offer valuable insights. The motivations behind these moves reflect shifts in lifestyle, financial goals, and evolving family dynamics.

One of the biggest driving factors? Space. People weren’t just looking for more square footage—they were seeking breathing room, functionality, and homes that better suited their changing needs.

Here’s a breakdown of the Top “D” Reasons behind the big moves of 2024:

1. Diamonds

Many couples tied the knot or moved in together, merging households and taking the next step in their relationships.

2. Divorce

On the flip side, the end of relationships led to property division, prompting many individuals to find a new place to call home.

3. Diapers

Growing families needed more space. Expecting parents and those with young children sought larger homes, better school districts, and kid-friendly neighborhoods.

4. Diverse Generational Living

Multigenerational homes became even more popular. Many families combined resources to live under one roof, whether to care for aging parents, share expenses, or simply stay close. Builders        took notice, designing homes with dual primary suites and in-law quarters.

5. Distance

Proximity to loved ones, jobs, and better opportunities played a major role. Many people moved to shorten their commute, be closer to family, or relocate for career growth.

6. Downsizing

Empty nesters and retirees traded large homes for smaller, lower-maintenance properties, seeking simplicity and financial freedom.

7. Difficulties

The rising cost of living pushed many to search for more affordable housing, lower taxes, or better economic opportunities in different regions.

8. Desk

Job changes continued to influence relocation. While remote work remains an option, many professionals moved for new career opportunities or returned to office-based roles.

9. Disaster

Wildfires, hurricanes, floods, and other natural disasters forced many to relocate, often to areas with lower climate risk.

10. Dreams

Finally, some moves were purely aspirational—people sought their dream home, a better lifestyle, top-rated schools, or a fresh start in a new city.

Looking Ahead

Whether driven by love, career changes, financial shifts, or the pursuit of a dream, 2024 was a year of movement. As we head into the future, these trends will likely continue shaping the real estate market.