Blog | Archives for October 2025

STM Gives Back: Donate Your Halloween Candy to Troops

By Kiley Belanga
October 31, 2025

For a second year in a row, Southern Trust Mortgage is proud to partner with the Soldiers’ Angels Treats for Troops program as an official donation location. This incredible Halloween candy collection initiative allows local businesses, like ours, to gather excess candy to send to the brave men and women serving our country.

Thanks to your generous support in 2024, we were able to collect an amazing 255 pounds of candy! This year, let’s aim even higher and show our service members how much we appreciate their sacrifice.

How to Donate Your Candy:

If you would like to donate this year, we will be accepting donations from November 1st through November 12th. Simply drop off your excess candy at our Virginia Beach location during business hours.

Annapolis

Location: 170 Jennifer Road , Annapolis, MD 21401

Hours: Tuesday, Wednesday, and Thursday, 9:00 AM – 4:00 PM

Fayetteville

Location: 4187 Sycamore Dairy Road, Suite 1, Fayetteville, NC 28303

Hours: Monday – Friday, 8:30 – 4:30

Innsbrook

Location: 4198 Cox Road, Suite 114, Glen Allen, VA 23060

Hours: Monday – Friday, 9:00 AM – 5:00 PM

Newport News

Location: 111 Walt Whitman Avenue, Newport News, VA 23606

Hours: Monday – Friday, 9:00 AM – 4:30 PM

Virginia Beach

Location: 295 Bendix Road, Suite 400, Virginia Beach, VA 23452

Hours: Monday – Friday, 8:30 AM – 5:00 PM

To learn more about the incredible work that Soldiers’ Angels does, and their mission to support military families, visit their official website.

Blog | Archives for October 2025

Common First-Time Homebuyer Fears and How to Overcome Them

Buying your first home can feel intimidating, but it doesn't have to be. With the right team to guide you, answer your questions, and support you through the process, you can go from "scared" to "confident" and get to the closing table with ease. Let's address some of the most common first-time homebuyer fears and show you how to overcome them.

By Kiley Belanga
October 29, 2025

Fear #1: Is Now the Right Time to Buy a House?

This is one of the most common fears, and the simple truth is: the right time to buy is when you are ready. Here are some questions to ask yourself to determine if you are ready to make the move:

Are you tired of paying someone else’s mortgage? If you’ve been renting for years and are seeing your rent increase annually, it might be time to invest in a home of your own. Your mortgage payment, unlike rent, won’t increase over time, giving you long-term stability and peace of mind. In many cases, a mortgage payment can be comparable to or even less than your current rent.

Do you want the freedom of owning your own home? Owning a home gives you the ultimate creative control. You can choose to install a new kitchen, set up a dedicated home gym, or finally plant that backyard garden you’ve always wanted. It’s about building a life that is truly yours, without having to get permission for every change you want to make.

Do you want to build wealth? Every mortgage payment builds home equity, which is the difference between your home’s value and the amount you owe. This equity is a powerful financial tool that can be used for future renovations, to pay for other expenses, and more.

If you answered “yes” to any of these questions it might be time to make the move. Contact us to see how much home you can afford and start your journey toward homeownership.

Fear #2: Having Less-Than-Perfect Credit

You don’t need a perfect credit score to buy a house. While a higher score can get you a lower interest rate, many loan programs are specifically designed to help first-time homebuyers with less-than-perfect credit. For instance, some government-backed loans, like an FHA Loan, may only require a credit score as low as 580.

It’s also important to remember that your credit score is just one part of your financial picture. Your lender will look at your overall financial situation, including your income and debt, to determine what you can afford. If you are looking to increase your credit score before you buy, our credit specialists can help you create a personalized plan for success.

Fear #3: Not Having a Large Enough Down Payment

This is one of the biggest and most outdated myths in real estate. The idea that you need a 20% down payment to buy a home is no longer the standard. Many loan programs make homeownership more accessible than ever by requiring a much smaller down payment.

For example, an FHA Loan allows you to buy a home with as little as a 3.5% down payment. If you are a veteran or active-duty service member, you may even qualify for a VA Loan, which allows for zero down payment in most cases. Your loan officer will sit down with you to explore these options and any down payment assistance programs you may qualify for, ensuring you find a plan that works for you.

Fear #4: Making The Wrong Choice

With so many home and loan options available, it’s normal to worry about making the wrong decision. This is why you partner with a local real estate agent and a loan officer, they’re your expert team to guide you through the process and help you make the right choice for your lifestyle and budget.

A real estate agent will help you find a home that meets your needs. Before you start looking, create a “wants,” “needs,” and “must-haves” list. Consider if you want a “fixer-upper” or something “turnkey.” Knowing these things ahead of time will help you focus on the right homes and make a choice that’s best suited for you.
A loan officer will assess your financial situation to determine what you can comfortably afford. They will show you different loan programs and help you find any grants you may qualify for. They will also get you pre-approved for a specific amount so you can shop for homes with confidence.

Let Us Help Take the Fear Out of Homebuying!

The journey to homeownership is exciting, and it’s normal to feel a little scared at first. But with the right knowledge and an expert team by your side, you can face these fears head-on and get the keys to your dream home.

Ready to take the first step? Reach out to us today to start your journey!

Blog | Archives for October 2025

Unlock Your Home’s Potential: How to Build Wealth Through Home Equity

As you make mortgage payments and your property's value appreciates, you're doing more than just living in your home, you're building home equity.

By Kiley Belanga
October 9, 2025

Equity is a powerful tool for building wealth and can be a valuable source of funds for everything from home upgrades to major life events. Whether you’re a first-time homeowner or have owned your home for years, understanding how to build and leverage your home’s equity is a key part of financial planning.

What is Home Equity?

Before we dive into the “how,” let’s clarify the “what.” Home equity is the portion of your home that you actually own. It represents your financial stake in the property. Your equity increases over time as you pay down your mortgage and/or as your home’s market value rises.

To calculate your home equity, simply use this formula:

Home’s Current Market Value – Your Mortgage Balance = Your Home Equity

For example, if your home is valued at $400,000 and you have a remaining mortgage balance of $250,000, your home equity is $150,000.

How to Build Home Equity:

Building equity starts the day you close on your home and continues throughout your ownership. Here are the most effective ways to accelerate the process:

Make a Larger Down Payment

The journey to building equity begins at the closing table. The more you put down when purchasing your home, the more equity you have from day one. While low- or no-down-payment options are available, a larger down payment gives you a significant head start on building wealth.

Increase Your Property Value

One of the most effective ways to boost your home’s equity is through strategic home renovations. While not all projects offer the same return on investment, certain upgrades can significantly increase your home’s market value. According to the National Association of REALTORS® 2023 Remodeling Impact Report, some projects with the highest return on investment include:

New Steel Front Door (100% ROI)
Closet Renovation (83% ROI)
New Fiberglass Front Door (80% ROI)
New Vinyl Windows (74% ROI)
New Wood Windows (71% ROI)

Beyond major projects, remember that regular home maintenance is crucial. Taking care of your home not only prevents costly repairs down the line but also helps maintain and increase its value, which directly contributes to your equity.

Pay More Towards Your Mortgage Principal

Every mortgage payment you make builds equity, but paying extra can dramatically speed up the process. In the early years of your loan, most of your payment goes toward interest. As your loan matures, a larger portion is allocated to the principal. By making additional payments, you can pay down the principal balance faster and save thousands in interest over the life of the loan.

Here are a few strategies to pay down your mortgage faster and gain equity:

Switch to Bi-Weekly Mortgage Payments. Instead of one payment per month, split your monthly mortgage payment in half and pay it every two weeks. This simple change results in 13 full payments per year instead of 12, shortening your loan term and reducing your total interest paid.

Add Extra to Your Monthly Payments. Review your budget and determine if you can add a little extra to your monthly mortgage payment. Even an extra $50 or $100 can make a big difference over time. When making extra payments, make sure you are applying these funds to the principal only.

Use Unexpected Funds. Whenever you receive a tax refund, a work bonus, or any additional money, consider putting a portion of it toward your mortgage principal to accelerate your equity growth.

Leveraging Your Home Equity

Home equity is a reliable and powerful source of wealth that you can access when needed. By strategically building your equity, you’re not only investing in your home’s future but also in your own financial security.

This valuable wealth can be leveraged in many ways, providing a source of funds for major life expenses. You can use your home equity to:

Fund Major Renovations: Turn your home into your dream space and potentially increase its value even further.
Consolidate High-Interest Debt: Use a lower-interest home equity loan to pay off credit card balances or personal loans, saving you money and simplifying your finances.
Cover Unexpected Costs: Whether it’s a medical emergency or an urgent repair, your home equity can act as a financial safety net.
Pay for Education: Home equity can be a great option for financing college tuition or other educational expenses.

By making smart choices today, you’re building a foundation for a more secure and prosperous future. If you’re ready to take the next step and start building wealth, contact us today to get started!

Blog | Archives for October 2025

Beyond the Keys: The First-Time Homeowner’s Guide to Your Mortgage, Post-Closing

Congratulations! You got the keys to your first home, now what? After the closing table and the excitement of moving in, you’re left with the quiet reality of homeownership and the upcoming first mortgage payment. This guide is designed to help you navigate your mortgage during the first year, so you can feel confident and in control.

By Kiley Belanga
October 2, 2025

Understanding Your First Mortgage Payment

Your first mortgage bill can feel intimidating, but don’t worry, it’s usually not due the month immediately after closing. This is because your first month’s payment is typically paid at the closing table. As a result, your first official payment will likely be due on the first day of the second month after you close. This gives you a one-month grace period before payments begin.

For example. If you close on July 10, your first payment will be due on September 1. Always check your closing disclosure or promissory note for the exact date.

Important Note: Your lender may sell your loan to a different servicer after closing. The company you make your first payment to may not be the same as the one you make your second payment to. Be sure to check your mail for notifications about this transfer.

Your Mortgage Statement Explained

Your mortgage statement is more than just a bill. It contains a detailed breakdown of your payment and provides key information about your loan. Here are the most important terms to know:

Principal: The base amount of the loan you borrowed to purchase your home.

Interest: The cost or fee your lender charges you for borrowing the money.

Taxes: Your payment typically includes estimated annual real estate taxes, also known as property taxes.

Mortgage Insurance: If your down payment was less than 20%, you likely have private mortgage insurance (PMI) included in your monthly payment. This protects the lender if you default on your loan.

Homeowners Insurance: Your monthly mortgage payment typically includes your annual homeowner’s insurance premium, which protects you from things like natural disasters, theft, and damage.

Navigating Escrow

Escrow is one of the most asked about financial terms in real estate. While you may be familiar with the escrow account that held your Earnest Money Deposit (EMD) before closing, you now have a new escrow account for your mortgage. This account holds funds for your property taxes and homeowners’ insurance.

What is Escrow?

Your lender collects a portion of your annual property taxes and homeowners’ insurance each month and holds them in an escrow account. The lender then uses these funds to pay your bills on time when they are due. This helps ensure that taxes and insurance are always paid, protecting both you and the lender.

The Annual Escrow Review

The taxes and insurance that make up your escrow payment can change from year to year. Your lender or loan servicer will review your account annually to ensure you’re contributing enough.

Overage: If you paid too much, you will receive an escrow refund in the form of a check.
Shortage: If you didn’t pay enough, you can either pay the difference upfront or have your monthly payment increased over the next year to cover the shortage.

Building Home Equity and Paying Down Principal

Your mortgage is a powerful tool for building wealth through home equity, which is the portion of your home that you own. As you pay down your mortgage and as your home’s value increases, you build equity.

Build Wealth with Extra Payments

Paying extra toward your mortgage principal can help you build equity faster. This also has the added benefit of reducing the life of your loan and saving you thousands of dollars in interest over time.

You can do this by:

Switching to bi-weekly payments, which results in 13 full payments per year instead of 12.
Adding an extra towards your payment each month.
Putting any unexpected funds or bonuses toward your principal.

Budgeting for the Unexpected

Beyond your mortgage payment, it’s important to budget for the unexpected costs of homeownership, such as utilities, regular maintenance, and repairs. A simple rule of thumb is to set aside 1% of your home’s value per year to cover maintenance and repairs.

For example, if your home is worth $350,000, you should aim to save $3,500 annually. This will help you avoid financial surprises and keep your home in great condition.

Our commitment to service doesn’t stop after closing. We’re always here to help you feel confident in your homeownership journey. Contact us anytime with questions about your mortgage or anything else.

STM Gives Back: Donate Your Halloween Candy to Troops

How to Donate Your Candy:

Annapolis

Fayetteville

Innsbrook

Newport News

Virginia Beach

Common First-Time Homebuyer Fears and How to Overcome Them

Fear #1: Is Now the Right Time to Buy a House?

Fear #2: Having Less-Than-Perfect Credit

Fear #3: Not Having a Large Enough Down Payment

Fear #4: Making The Wrong Choice

Let Us Help Take the Fear Out of Homebuying!

Unlock Your Home’s Potential: How to Build Wealth Through Home Equity

As you make mortgage payments and your property's value appreciates, you're doing more than just living in your home, you're building home equity.

What is Home Equity?

To calculate your home equity, simply use this formula:

How to Build Home Equity:

Make a Larger Down Payment

Increase Your Property Value

Pay More Towards Your Mortgage Principal

Here are a few strategies to pay down your mortgage faster and gain equity:

Leveraging Your Home Equity

Beyond the Keys: The First-Time Homeowner’s Guide to Your Mortgage, Post-Closing

Understanding Your First Mortgage Payment

Your Mortgage Statement Explained

Navigating Escrow

What is Escrow?

The Annual Escrow Review

Building Home Equity and Paying Down Principal

Build Wealth with Extra Payments

Budgeting for the Unexpected