Blog | Archives for November 2025

Moving During the Holidays: Pros and Cons of a Festive Move

Buying a home and making the move is a significant undertaking at any time of year, but what about moving during the holidays? While the flurry of festivities might make it seem impossible, there are unique financial and logistical benefits to moving during the most wonderful time of year. Let’s unpack the pros and cons of an off-season move!

By Kiley Belanga
November 27, 2025

Pros of Moving During the Holidays:

Less competition in the Housing Market

The real estate market tends to cool down during colder months. This often means less competition, fewer bidding wars, and more negotiating power. Sellers are often eager to close before the new year, making them more open to offers and potentially saving you money on your new home purchase.

An Abundance of Time Off

Most people have more time off during the holidays, providing a valuable window to plan, pack, and move. When house hunting, packing, and settling into a new home, every extra day off makes a significant difference in reducing stress.

Easier Moving Logistics

Just like in real estate, the moving industry tends to slow down during the winter. This means scheduling your move just got easier! You are much more likely to secure your preferred move-in date and may even find more competitive rates. Remember to still plan ahead and confirm your movers’ holiday availability when scheduling.

Holiday Sales on Home Essentials

The holiday season offers an abundance of sales on big-ticket items like furniture, appliances, paint, and décor. This is also true for services you may need, like professional cleaning or hiring movers.

Mortgage Tip: Do not open any new lines of credit or make any large purchases while you are in the process of securing a mortgage.

The Year-End Tax Benefit

Closing on a home before December 31st allows homeowners to claim valuable tax deductions (such as mortgage interest and property taxes) when filing their taxes for that year.

Please consult your tax advisor.

A Fresh Start for the New Year

Picture ringing in the new year in your beautiful new home! Use the process of packing and moving as an opportunity to declutter and reorganize so that you can start the year feeling fresh and settled.

Cons of Moving During the Holidays:

Inclement Weather

Winter weather can be unpredictable. Be prepared for potential cancellations or delays when scheduling your move in case you run into a sudden snowstorm or icy conditions. Remember to always have a backup plan.

Added Holiday Stress

The holidays are already a busy and stressful time with gift shopping, family obligations, and meal preparation. Adding a move on top of this can feel overwhelming. To make it more manageable:

Stay organized and set realistic expectations.
Lean on your family and friends for help.
Prioritize your well-being during the transition.

Limited Daylight

With shorter days during the winter, you have less daylight for the moving process. Don’t let the lack of light deter your move, but be wary of black ice and icy conditions, and take necessary safety precautions for yourself and anyone helping you.

Essential Tips for Moving During the Holidays:

Plan and Budget Ahead

The earlier you start planning, the smoother your move will be. Create a comprehensive moving checklist, organize, pack, and label your boxes clearly. Crucially, budget for extra moving expenses alongside your holiday spending. The holidays are a great time to save on moving supplies with sales like Black Friday or Cyber Monday, so plan your purchases!

Monitor the Weather Closely

Don’t be caught off guard by inclement weather. Check the forecast regularly for updates on snow, ice, or rain. Keep winter essentials (coats, gloves, and scarves) readily available, along with tools like a shovel and rock salt to clear your walkways and driveway.

Protect Your New Home from the Elements

Purchase plastic sheeting, drop cloths, or use old towels to protect your new home’s floors and carpets from mud, snow, and salt brought in by movers and foot traffic.

Day-One Holiday Essentials

Create a clearly labeled essentials box that includes more than just toiletries and snacks. It should have holiday decorations (even just a few small ones) and a few small, wrapped gifts to help you instantly feel festive and settled in your new home.

Send Holiday Moving Cards

Sending out holiday moving cards is a thoughtful and festive way to let your friends and family know your new address! You can even include photos of your new home decorated for the season, giving them a glimpse of your new space.

Ready to Make Your Move?

Don’t miss the chance to save on your purchase and claim that year-end tax benefit! If you’re ready to make a smart move this season, contact us today to get started on your pre-approval!

Blog | Archives for November 2025

Buying a Home with Gift Funds: What You Need to Know

If you are planning to use gift funds to buy your home, there are a few things you should know before accepting the cash.

By Kiley Belanga
November 20, 2025

What are Mortgage Gift Funds?

Mortgage gift funds, often called a down payment gift, are money given to a homebuyer by an approved donor, typically a family member, to help cover the down payment, closing costs, or other expenses when buying a home.

When using gift money, you must strictly follow the rules from your mortgage lender and/or government agency insuring the loan (like FHA or VA).

Why Do Lenders Have Rules About Down Payment Gifts?

Lenders need to verify your income and the source of your funds when you apply for a mortgage. A large down payment demonstrates financial stability. However, if that money comes from somewhere other than your own savings, the lender needs confirmation that it is a genuine gift and not a loan that you will need to repay. Repayments would impact your debt-to-income ratio and your ability to afford the mortgage.

Gift Fund Rules by Loan Type

Each mortgage type, Conventional, FHA, VA, and USDA, has its own specific rules regarding gift funds and how they can be used:

Conventional:

Property Type: Can be used for a primary residence or second home. Cannot be used for investment properties.

Usage Can fund all or part of the down payment, closing costs, or financial reserves, subject to any minimum borrower contribution requirements.

Approved Donors: Can be provided by a relative or non-relative who shares a familial relationship with the borrower.

Prohibited Donors: Cannot be provided by, or have any affiliation with, the builder, the developer, the real estate agent, or any other party interested in the transaction.

Documentation: A gift letter signed by the donor is required.

FHA Loan:

Approved Donors: Can be provided by a family member, employer or labor union, a close friend with a clearly defined and documented interest in the borrower, a charitable organization, or a government agency/public entity with a program assisting low- or moderate-income families or first-time homebuyers.

Documentation: A gift letter signed and dated by both the donor and borrower is required.

VA Loan:

Usage: Use towards the down payment (if you choose to make one), funding fees, and closing costs.

Prohibited Donors: Cannot be provided by anyone with an interest in the transaction.

Documentation: A gift letter must be provided.

USDA Loan:

Usage: You can use gift money towards your closing costs, but not towards cash reserves.

Prohibited Donors: The money can come from anyone not interested in the transaction.

Documentation: A gift letter must be provided.

Writing a Mortgage Gift Letter

The most critical step in using gift funds is providing the paper trail and documentation. Before creating your letter, first check with your lender to see if they have a gift letter template to use. A standard gift letter typically needs to include:

The exact gift amount
The date the money was transferred
The property address you are purchasing
Your relationship with the donor
The donor’s name, address, and phone number
A clear statement that the money is an irrevocable gift and there is no expectation of repayment (this is the most important part).
Both the donor and the borrower must sign (sometimes the letter only requires the donor’s signature, check with your lender).
To verify the transfer, include copies of the donor’s bank statements showing the withdrawal and the buyer’s bank statements showing the deposit.

Do Gift Funds Affect Taxes? (IRS Rules)

While your lender is concerned with the origin of the funds, many donors worry about the IRS Gift Tax.

For the Buyer (Recipient): The great news is that the gift is never considered taxable income for you. You do not pay tax on the gift.

For the Donor (Gifter): The IRS sets an annual gift tax exclusion amount ($18,000 for 2024). A donor can give this amount to any number of people each year without reporting it. However, if a gift exceeds this annual exclusion, the donor must file a Gift Tax Return (Form 709). Filing the form does not usually mean the donor has to pay taxes; it simply tracks the amount against the donor’s lifetime gift and estate tax exemption (a very high dollar amount).

Please consult your tax advisor.

Gift funds are a fantastic way to cover a down payment and other mortgage expenses, but you must be prepared to follow the rules and provide a clear paper trail to verify the money is, in fact, a gift.

If you have questions about using mortgage gift funds or are looking to get pre-approved, contact our team today!

Blog | Archives for November 2025

Pre-Qualified vs. Pre-Approved: What’s the Difference and Which Do You Need?

When you're starting the homebuying process, you'll hear a lot of new terms. Two that often cause confusion are "pre-qualified" and "pre-approved."

By Southern Trust Mortgage
November 13, 2025

While pre-qualification and pre-approval might sound similar, they represent two very different stages in the mortgage process. Understanding the distinction is crucial for any homebuyer because one of these steps brings you much closer to closing on your dream home.

Understanding Pre-Qualification

Think of a pre-qualification as the first, informal step. It’s an initial estimate of how much you might be able to borrow. When you start this process, your mortgage lender will perform a soft inquiry or soft pull on your credit. This type of credit check doesn’t impact your credit score, making it a low-risk way to get started.

How it works: You contact a mortgage lender and provide them with some basic, self-reported financial information, such as your income, existing debts, and a rough estimate of your credit score. Based on this information, your lender gives you a general idea of the loan amount you could potentially be approved for.

What to remember: A pre-qualification is not a guarantee of a loan. It’s a quick, helpful way to set a realistic price range for your home search. It’s a good starting point, but it’s not what sellers and their real estate agents will consider a serious offer.

Understanding Pre-Approval

A pre-approval is a much more significant and formal step. It’s a conditional commitment from a lender to provide you with a mortgage up to a specific amount.

How it works: To get pre-approved, you’ll submit a full mortgage application and provide the lender with required financial documentation. This typically includes:

Recent pay stubs
W-2s or tax returns
Bank statements
Documentation of other assets and debts

Your loan officer will thoroughly review these documents and verify your financial information, including pulling a hard inquiry on your credit report. Once this comprehensive review is complete, your lender will provide you with a pre-approval letter stating the exact amount they are willing to lend you.

What to remember: A pre-approval letter is a powerful tool. It shows sellers that you are a serious, qualified buyer who is ready to make an offer. In a competitive housing market, having a pre-approval can give you a significant advantage over other buyers.

Common Homebuying Mistakes to Avoid

The journey from thinking about buying a home to getting to the closing table is filled with potential pitfalls. Here are a few to watch out for:

Relying on inflated credit scores: Be cautious about using third-party credit reports that may not be accurate. Always verify your credit history and credit score with one of the three major bureaus.
Making big financial moves: Avoid opening new lines of credit, such as a store credit card or a new car lease, which may hurt your credit scores while you are in the process of getting a mortgage. These actions can lower your credit score and negatively impact your debt-to-income ratio, jeopardizing your approval.
Being dishonest about your finances: Transparency is key. Be upfront with your lender about all financial matters, including alimony payments, tax liens, or recent financial gifts. Surprises can cause delays or even cancel your loan.

Preparing for the Homebuying Process

Even before you start the pre-qualification process, you can get your financial house in order. A year out is an excellent time to:

Monitor your credit: Check your credit report for any errors and start paying down debt.
Assess your down payment: Get a realistic idea of how much you can afford to put down.
Connect with professionals: Talk to a real estate agent and a mortgage lender early. They can help you understand the process and set expectations, especially if you have a non-traditional income, such as commission-based pay.

The Final Takeaway

While a pre-qualification is a good first step, it’s the pre-approval that truly opens the door to homeownership. It’s a crucial milestone that shows sellers you are ready to buy.

Ready to take the next step? Our seasoned mortgage lenders are here to help. Contact us today to get started on your pre-approval and move one step closer to your new home!

Need to get approved fast? Learn more about our Priority Approval and see how you can get approved in 24 hours!

Blog | Archives for November 2025

VA Loans: Essential Information for Service Members and Veterans

VA Loans are a benefit designed to honor and provide essential housing assistance to our service members and veterans.

By Southern Trust Mortgage
November 6, 2025

What is a VA Loan?

A VA Loan is a mortgage loan guaranteed by the United States Department of Veterans Affairs (VA). It offers long-term financing to eligible American veterans and their surviving spouses. The primary goal of the program is to provide eligible veterans with home financing that requires no down payment.

Who Can Apply for a VA Loan?

Active-duty service members
Veterans
National guard members
Reservists
Cadets in the Air Force, Coast Guard or U.S. Military
Officers of the National Oceanic and Atmospheric Association (NOAA)
Individuals who have served 181 continuous days during peacetime or 90 days during wartime
Veterans who enlisted after September 7, 1980, or began service after October 16, 1981, must have served a minimum of 6 years (criteria apply)
The surviving spouses of veterans who died from service-related disability or during active duty

Benefits of a VA Loan

For active-duty service members, veterans, and their surviving spouses, this is a valuable lifetime benefit that can be used multiple times. Other significant benefits include:

No down payment required
Competitive interest rates
Limited closing costs
No Private Mortgage Insurance (PMI) requirement

VA Renovation Program

If you own a home that needs minor repairs, but you lack cash on hand, you may be able to renovate using VA loan benefits. The VA Renovation Program helps the men and women who serve our country repair or upgrade their homes using the competitive rates offered by VA lending programs.

The VA Renovation Program allows for minor renovation costs to be included in the loan amount of a home purchase, or for repairs being done to an existing home with equity. This program is ideal for small repairs, such as repainting and fixture swaps, or for accessibility upgrades like ramps and rails.

Program Features Include:

Up to $35,000 in renovation costs
No minimum repair amount (includes minor and non-structural repairs)
Accessibility upgrades
Flexible delivery channels
For purchase or refinance properties
Cosmetic repairs allowed
No consultant required

Selling or Buying a Home with an Existing VA Loan? Explore a VA Loan Assumption.

One of the lesser-known benefits is the VA Loan Assumption. Assumable loans have become increasingly attractive to today’s buyers, particularly in a high-interest-rate environment.

An assumption allows a homebuyer, whether they are a veteran or not, to take over a VA Loan, including its interest rate and remaining balance. This can be a powerful selling point for VA homeowners as assumptions typically come with lower fees and fewer closing costs.

Benefits:

Lower Interest Rate: the buyer inherits the seller’s existing interest rate.
Lower Costs and Fees: Assumptions typically involve lower fees and fewer closing costs. The only mandatory fee is the Funding Fee, equal to 0.5% of the loan balance.
Simpler Qualification Process: Often a less intense process than applying for a new mortgage.
Open to all Buyers: the buyer does not need to be a veteran to assume the loan.

Cons:

Equity Payout Requirement: To close the deal, the buyer must have sufficient cash to cover the difference between the home’s sales price and the remaining loan balance (the seller’s equity).
Entitlement Risk for Seller: If a non-veteran assumes the loan, the seller’s VA Loan entitlement will remain tied to that property until the loan is fully paid off.
Continued Liability Risk: Until the seller receives a formal “release of liability” from the lender, they can remain financially responsible if the new borrower defaults on the loan.

Ready to Explore Your VA Loan Options?

Southern Trust Mortgage is proud to deliver affordable VA mortgage financing to eligible veterans and active-duty servicemen and women of the United States’ military. Given that the Southern Trust footprint covers many military areas, our loan officers are extremely experienced in VA lending and all VA programs. Contact us today to get started!

For more information please visit: https://www.benefits.va.gov/homeloans/