Blog | Archives for March 2026

Home Buying Guide for Under 40 Professionals

By Wendy Lewis
March 30, 2026

From Scroll to Sold: Unlocking the Next Generation of Homeowners

You’ve probably done it countless times – you scroll listings, save a couple of homes, picture yourself owning the house, but you stop a few steps short of beginning the journey to homeownership. And you aren’t alone.

Today’s first-buyers haven’t disappeared from the market. They’re waiting for the right time, better rates, and more savings. Of course, taking time to make an investment as large as buying a house is prudent. Waiting may even make the investment feel safer.

However, waiting could be costing new home buyers more than they realize. In today’s market, costs aren’t just what you pay; they’re also what you postpone buying.

The Hidden Cost of Waiting

It is important to understand the “time in the market” concept to see why waiting costs so much. “Time in the market” doesn’t mean buying a house at the perfect time. Rather, it refers to giving your investment time to grow and create wealth for you.

If you get into the market early, your home will have sufficient time to grow in value. The growth blends with the mortgage you pay to build equity. Within a few years, that equity turns into the leverage you need to fund your next investment and boost your financial stability. Research shows that if you buy a house at 30, your net worth will be 22.5% higher by the time you hit 50 years old.

Waiting delays your ability to build wealth. Professionals under 40 who buy homes enjoy years of appreciation and compounded growth that play an important role in the bigger financial picture.

It’s Not Just About the House Anymore

Traditionally, homeownership has been about hitting a life milestone. You save money, get a mortgage that aligns with your earnings, and buy a home you will live in forever.

But the modern buyer thinks about home ownership in a different way. Instead of seeing it as a once-in-a-lifetime decision, they view houses as investments. Thus, homes have become one of the tools used to support long-term wealth creation and stability.

As a first-time buyer, it makes sense to pause and think things through since the market may feel uncertain. But your first house doesn’t have to be perfect. Think of it as a starting point that will help you move forward.

Why It Feels So Hard Right Now

If you feel that home buying is out of reach, you aren’t alone. Many under 40 professionals who can buy a home often think their salary isn’t enough, their credit score is too low, or they don’t have enough savings to make a large down payment.

However, most homeowners aren’t “ready” when they start. They become ready by understanding what’s possible, then taking small but informed steps. In most cases, lack of money is never the problem. The bigger issue is that they don’t have a clear starting point.

There are numerous options for first-time buyers. These include low down payments and flexible loan options. It’s also possible to receive expert guidance on improving your credit rating. While there’s no one-size-fits-all solution to owning your first home, you’ll find a clear path.

Renting vs. Owning: The Long Game

Renting feels easier and provides short-term relief. It doesn’t require a hefty upfront cost and sometimes avoids maintenance fees. Most people look at their living situation and choose to rent.

However, it doesn’t take long to see why owning is the better, smarter option. Monthly rent goes towards the landlord’s investment. While rent is an expense, a mortgage becomes equity and creates long-term value.

During the initial stages of the investment, you must have the right mindset. Remember, your first house doesn’t have to be your permanent home. It’s fine to start with a modest house, provided it helps you create momentum and lay a foundation you can build on.

The Emotional Side No One Talks About

Most under 40 professionals who can buy a home today grew up during the 2008 housing crash. Watching families struggle and eventually lose their homes reshapes how people think about risk. The hesitation to buy a home isn’t just financial – it’s also emotional.

It’s important to remember that the housing market operates very differently today. There are now safeguards, and lending standards are tighter. While you can’t ignore the fears, you can understand them and replace uncertainty with clarity.

You Might Be Closer Than You Think

When it comes to buying a home for the first time, the common mindset is: “I’ll look into this when I’m ready.” But there’s a better way to think about it. Ask yourself what you need to learn to be ready. The shift changes everything.

Instead of saving some listings, you’ll start exploring your options. Once you check the available programs, it’s easier to see what you can realistically afford. Home ownership feels more concrete since you’re working with real information.

The clarity makes first-time home ownership stop feeling like a distant, overwhelming process. Instead, it becomes a goal you can achieve through a structured process.

From Waiting to Winning

Home ownership is about more than finding a place to live. It’s a long-term move that kickstarts the journey of wealth creation. Ultimately, it gives you better control over your future financial standing.

While waiting may seem safer, it can also delay progress. The better bet is to understand your options and make informed decisions. Shifting from waiting to learning means you’re moving forward with a purpose.

If you’re curious about what’s possible for you, join us for a virtual homebuying webinar. You’ll get a clear picture of where you are and which steps you can take to buy your first home.

Blog | Archives for March 2026

How Temporary Buydowns Can Make Homeownership More Affordable

By Kiley Belanga
March 26, 2026

Buying a home with today’s rates and prices can make the dream of homeownership feel out of reach. To help make owning a home possible for more people, many sellers and builders now offer temporary buydowns.

What is a Temporary Buydown?

A temporary buydown lowers a new homeowner’s monthly mortgage payments by reducing the interest rate for the first one to three years of the loan. In this arrangement, the seller or builder only needs to provide the credit while the lender applies those funds to the monthly payments during the introductory period.
This strategy helps a homebuyer ease into their mortgage payment while freeing up funds for other moving related expenses.

How Does a Temporary Buydown Work?

A seller credit is placed into an escrow account at the time of closing. These funds are specifically designated to supplement the borrower’s monthly payments for the term of the buydown. Since this money is already set aside, the lower payment is guaranteed for the duration of the buydown period.
Important information regarding qualification: To ensure long-term financial stability, the buyer must be approved at the full “note rate” (the permanent interest rate). This confirms that the buyer can comfortably afford the monthly payment after the temporary buydown period has expired.

There are Three Common Types of Temporary Buydowns:

1-0 Buydown: Reduces the note rate by 1% for the first 12 months.
2-1 Buydown: Reduces the note rate by 2% for the first year, then 1% the second year. Years 3-30 will be at the original note rate.
3-2-1 Buydown: Reduces the note rate by 3% the first year, 2% the second year, 1% the third year, and years 4-30 will return to the original note rate.

Example 2-1 Buydown

Example is based on a sales price of $250,000 with a base loan amount of $225,000, and seller paid buydown funds of $5,304.

Period	Down Payment	Interest Rate	APR	Est. MI	Monthly Payment	Annual Savings
Year 1	$25,000	5.25%	7.294%	$41.25	$1,283	$3,516
Year 2	–	6.25%	7.294%	$41.25	$1,426	$1,800
Year 3+	–	7.25%	7.294%	$41.25	$1,576	–

This program uses a seller funded buydown subsidy to lower borrower’s P&I payments for the first 24 payments on the loan. Buydown subsidy in this example is $5,204 based on a $250,000 sales price, loan amount $225,000, and credit score 760. APR = Annual Percentage Rate. This is for informational purposes only, rates are subject to change without notice.

While buydowns offer thousands of dollars in upfront savings for buyers, the value goes beyond the monthly payment. As a powerful negotiation tool, buydowns help buyers enjoy immediate financial relief while sellers gain a competitive edge to close the deal without slashing their asking price.

What are the Benefits of a Temporary Buydown?

Benefits for the Seller:

Offering a temporary buydown is often a better alternative than dropping the sales price of the home. This way, the seller can maintain their asking price while still providing the buyer with a lower monthly payment.

Faster Sales: Offering seller credits can help a listing stand out in a competitive market.
Cost Efficiency: Price reductions are often more expensive for a seller than offering a targeted credit.
Incentive: It serves as a powerful “goodwill” gesture to help a buyer manage their initial costs.

Benefits for the Buyer:

Temporary buydowns provide a smoother transition into homeownership, especially for buyers who expect their income to increase over time.

Gradual Adjustment: New homeowners can ease into their long-term budget by paying less than the actual fixed-rate payment for the first few years.
Stable Loan Amount: Unlike some other financing options, a buydown does not increase the principal loan amount.
Safe Savings: It is a secure way to get lower payments in a high-interest-rate environment.
Cash Flow: It frees up funds for moving expenses, buying furniture (after you close), or building an emergency fund.

While the immediate savings are what draw buyers in, many homeowners are looking towards the future. As market conditions shift, buyers may want to refinance if interest rates happen to drop

What Happens if you Refinance Before the Buydown Period Ends?

If interest rates drop and you choose to refinance before the buydown period ends, you do not lose those funds. Instead, the remaining balance in the escrow account is applied directly towards your principal loan balance. This reduces your total debt and gives you a head start on your new loan!

Who is a Temporary Buydown For?

While anyone can benefit from lower payments, this strategy is particularly effective for certain types of buyers:

Career Path Growers: Professionals who expect their income to increase significantly over the next few years.
Cash-Conscious Buyers: People who want to keep more liquidity on hand for immediate home renovations or moving costs.
Transition Households: Families moving from a dual-income to a single-income household temporarily, such as those planning for a new child.

Now we know who benefits most from this program, but how does it stack up against other popular interest rate reduction methods? While temporary buydowns focus on significant short-term relief, other options like discount points or adjustable-rate mortgages offer alternative methods for saving money.

Discount Points vs Temporary Buydown

Another way borrowers reduce their rate is by paying discount points. This involves paying a one-time fee at closing to permanently reduce the interest rate. While points provide savings over the entire life of the loan, a temporary buydown offers much more significant, immediate savings during the first few years.

Adjustable-Rate Mortgages (ARMs) vs Temporary Buydown

With an ARM, the interest rate can fluctuate over the life of the loan based on market conditions. Alternatively, the interest rate on a temporary buydown is fixed from the start. The payment is only lower because the seller pre-paid a portion of the interest, making a buydown much more predictable and lower-risk option.

Is a Temporary Buydown Right for You?

Whether you are buying your first home or looking to sell your current property faster, we are here to help. Contact our team today to see if a temporary buydown is the right strategy for your next move!

Blog | Archives for March 2026

Medical Debt, Your Credit, & Your Mortgage: What You Need to Know

By Kiley Belanga
March 16, 2026

When buying a home, your credit score is one of the single most important factors in determining your interest rate and your approval. In the past, medical debt weighing on a borrower’s credit score could be the deciding factor of whether they could qualify for a mortgage.

That has since changed for the better, bringing relief to millions of Americans. Here is how the 2025 rulings and updated credit reporting practices impact your journey to homeownership.

Quick Guide: How Medical Debt Affects Your Mortgage

Debt Type	Shows on Credit Report?	Impact on Mortgage
Bills Under $500	No	Zero Impact on Score
Paid Collections	No (removed usually within 14 days after being paid)	Boosts Score Once Removed
Unpaid Over $500	Yes*	Can affect DTI and Score

*Note: Under the 2025 CFPB rule, most medical debt is being phased out of lending decisions entirely

A Detailed Look at Medical Debt and Your Credit

If you pay your medical bills on time, you don’t need to worry. However, it is worth noting what happens if you have:

Unpaid Medical Bills Under $500

Unpaid medical collection accounts under $500 no longer show up on your credit report and do not impact your credit score. This protects borrowers from surprise small bills that used to tank scores right before a home closing.

Unpaid Medical Bills Over $500

Medical bills over $500 will appear on your credit report if your account is sold to collections and you don’t pay the bill within the 365 day grace period. A large collection can still technically lower your overall FICO score, which might affect your interest rate.

Paid Medical Collections

The best news for homebuyers is a policy created by the three credit bureaus, is that once you pay off a medical collection account, it will be removed from your credit report entirely. This usually results in an immediate positive impact on your credit score.

Important: The Hidden Impact of Medical Debt on Your Mortgage

Medical debt can still affect your mortgage application through your debt-to-income (DTI) ratio if it is over $500.

If you are on a monthly payment plan with a hospital or medical provider, that monthly payment is considered a reoccurring debt. When a lender calculates how much home you can afford, they must include those payments. A high monthly medical payment could potentially lower the total loan amount you qualify for.

Expert Tip: Avoid putting medical debt on a standard credit card or a “medical credit card” (like CareCredit) if you plan to buy a home soon. Once medical debt becomes “credit card debt” it loses all special protections mentioned above and will negatively impact your credit and DTI.

Steps to Take Before Applying for a Mortgage

Check Your Reports: Visit annualcreditreport.com to ensure any medical debts under $500 or paid collections have been removed.
Keep Records: Save your “Paid in Full” receipts from medical providers to prove a debt should be removed from your report.

Blog | Archives for March 2026

Buying a House? Stop the Junk Mail and Calls Before It Starts

By Kiley Belanga
March 12, 2026

If you have ever applied for a mortgage, you probably noticed a sudden spike in unsolicited calls and junk mail. Many of these letters might look like they are coming from your mortgage lender, but they are often misleading advertisements from third parties.

Read on to learn why this happens, how to spot these “trigger lead” offers, and how to stop them using optoutprescreen.com.

Why Do You Get Junk Mail After Applying for a Mortgage?

There are two primary ways solicitors obtain your information during the mortgage process. While Southern Trust Mortgage does NOT sell client data to a third parties, the credit reporting system itself triggers these unwanted contacts. We want our homebuyers to be empowered to protect their information.

Credit Inquiries and “Trigger Leads”
When you apply for a mortgage, your lender preforms a “hard pull” on your credit. This notifies the three major credit bureaus that you are officially in the market for financing. Under the Fair Credit Reporting Act (FCRA), bureaus are permitted to sell your name to other creditors or insurers who want to make offers. These are known as Trigger Leads. Within hours of your application, competing lenders may begin blowing up your phone with “better rates” or “special incentives”.

Pro Tip: Southern Trust Mortgage is committed to protecting your privacy. We start with a soft inquiry upfront when you apply. This eliminates these initial trigger leads. Then we encourage buyers to opt-out before doing a hard pull.

Post-Closing Junk Mail
Once close on your home, certain details, like your name, address, lender, and loan amount, become public record at the county level. Marketers monitor these records to send you everything from pest control to Mortgage Protection Insurance.

How to Stop Unsolicited Credit Offers

The FCRA gives you the right to “opt-out” of pre-screened credit offers. This prevents credit bureaus from providing your information for these unsolicited lists.

For Immediate Protection (5 Years): Visit optoutprescreen.com or call 1-888-567-8688. This is the fastest way to reduce calls before you apply for a loan.

For Permanent Protection: You can opt-out permanently by mail.

Pro Tip: We recommend starting with the electronic opt-out during the application process, then following up with the permanent mail-in request after you get your keys. This will reduce the time it takes for the opt-out to go into effect.

Important Note: The safety of your information is important to us. Optoutprescreen.com is a secure website and is the only internet website authorized by Equifax, Experian, Innovis, and TransUnion for consumers to opt-out of firm offers of credit or insurance.

How to Spot “Fake” Mortgage Mail

Many letters you receive after closing are designed to look official. They may use urgent language (“Final Notice”) or include your lender’s name in bold. Look for these red flags:

Vague Messaging: Phrases like “Important Insurance Information” without a specific policy number.

The Fine Print: Look at the bottom of the page. Legitimate junk mail must include a disclaimer stating: “information obtained from public records” or “Not affiliated with [Your Mortgage Lender].”

Typos: Professional lenders rarely have glaring spelling errors in official correspondence.

If you spot one of these fake letters, don’t just toss it in the trash. Make sure to shred the letter to better protect your information once you throw it away.

Reduce General Marketing Mail

To reduce general junk mail (catalogs, magazines, etc.) for 10 years, register at DMAchoice.org, the Association of National Advertisers’ (ANA) website. While it won’t stop every flyer, it significantly cleans up your mailbox. You can choose what catalogs, magazine offers, and other mail you want to get. There is a small fee of $8 to register online or $9 to register by mail.

When in Doubt, Don’t Toss It!

While most unsolicited mail is junk, your actual mortgage company will send you important documents regarding your escrow, taxes, or payoff information. If you aren’t sure if a letter is legitimate, don’t guess. Call you loan officer, they are happy to help verify it for you!

Boost Your Score and Get Into Your Dream Home

If your credit is less-than-perfect, but you’re ready to start your homebuying journey, join our FREE Homebuyer Credit Seminar hosted by Southern Trust Mortgage’s in-house Credit Specialist, Mike McNamara.

Mike will guide you through how lenders evaluate credit for a mortgage approval, common misconceptions, strategies to improve and strengthen your score, and more.

Virtual Seminar: Wednesday, March 25 at 6:00 PM

Blog | Archives for March 2026

The Ultimate Spring Housing Market Guide: Prep for Success

By Kiley Belanga
March 5, 2026

Spring is on the horizon, and as the temperatures rise, so does the housing market. For buyers this means preparing for increased competition. For sellers, it’s about standing out as more inventory hits the neighborhood.

Whether you are looking to move in or move out, here is how to navigate the spring season successfully.

The Buyer’s Guide: Winning in a Competitive Market

Spring is the ideal time to buy if you want a summer move-in date. With new listings hitting the market daily and interest rates stabilizing, staying ahead of other buyers is essential.

Start Your Financial Spring Cleaning
Before you fall in love with a home, make sure your finances are spotless.
Audit Your Credit: Avoid large purchases (like a new car or furniture) until after you have closed on your home.
Leverage Your Tax Refund: Many buyers use their spring tax refunds to help cover closing costs or boost their down payment.
Get Pre-Approved First: As the most critical step, a pre-approval from a local lender like Southern Trust Mortgage tells sellers you’re a serious, qualified buyer.
Priority Approval: Need a decision Fast? Southern Trust Mortgage offers priority approval, a fully underwritten credit approval designed to get you a decision in 24 hours or less.
Define Your Must-Haves vs Nice-to-Haves
In a fast-moving market, indecision leads to missed opportunities. Create a list of non-negotiables (like school districts or bedroom count) versus the things you can compromise on.
Knowing what you are looking for in a home and what you can compromise on will narrow down listings and save you time in your search. Once a house checks all your boxes, you will be able to jump and make an offer fast!

Work with an Experienced Real Estate Professional
An experience agent is your greatest advocate. Interview agents who specialize in the neighborhood you are interested in. They will be able to provide local insights and negotiation skills necessary to make your offer the winning one.

The Seller’s Guide: Standing Out in a Crowded Market

Sellers who stayed on the sideline during the winter are now entering the market. While there are more buyers, there is also more competition from other listings. Here is how to make your home the “must-see” property:

Get up to Date on Maintenance
The little things make all the difference when selling your home, and small flaws can create doubt. Fix leaky faucets, touch up scuffed baseboards, and ensure doors open smoothly. A well-maintained home inspires buyer confidence.
Boost Curb Appeal
First impressions happen at the driveway. Fresh mulch, seasonal flowers, and a clean coat of paint on the front door make your home feel more inviting the moment a buyer pulls up.
Price Strategically
Overpricing can cause a home to sit stagnant, while a competitive price can spark a bidding war. Rely on your agent’s Comparative Market Analysis (CMA) to find the sweet spot for your home.
Incentivize Your Listing: Temporary Buydowns
If your home isn’t moving as fast as you’d like, don’t rush into a price reduction. Instead, consider offering a Temporary Interest Rate Buydown.
How it works: Instead of dropping your price by $10,000, you can use that money to “buy down” the buyer’s interest rate for the first 1-3 years.
The Win-Win: A temporary buydown often saves the buyer more on their monthly payment than a price cut would, while allowing you to keep your higher asking price.
Stage for Success
Declutter and depersonalize. You want buyers to envision their lives in the space, not yours. Neutral décor and open spaces help rooms feel larger and brighter.

Don’t lose out to the listing down the street! Make your home the one buyers want to fall in love with.

Spring Market Quick Tips

Focus Area	Buyer Tip	Seller Tip
Preparation	Secure a Priority Approval with Southern Trust Mortgage.	Focus on curb appeal and landscaping.
Strategy	Define “Must-Haves” to act quickly.	Price competitively to spark bidding.
Execution	Work with a local real estate agent.	Stage with neutral, clutter-free décor.

Ready to Make the Move this Spring?

At Southern Trust Mortgage, we are committed to guiding you through every step of the homeownership journey. Whether buying your first home or selling your current one, we have the tools to get you home. Contact us today to get started!