New Homeowners Checklist: 7 Essential Steps for Moving Into Your New Home

By Kiley Belanga
May 7, 2026

Congratulations on Your New Home!

Closing on a new home is a huge milestone, and while moving is exciting, the to-do list can feel overwhelming. To help you with a smooth transition, we’ve rounded up the essential tasks you should tackle as soon as you get the keys.

Get to Know Your Home

Before you get into the nitty-gritty of unboxing, take a safety tour of your property.

Locate Shut-Off Valves: Find the main water shut-off and gas valves. Knowing their location will be invaluable in an emergency.
Label the Breaker Box: If the electrical panel isn’t labeled, take a few minutes to identify which breakers control which rooms.
Organize Manuals: Gather all appliance manuals and warranties left by the previous owners and store them in a single safe location.

Change the Locks Immediately

Changing the locks is one of the most important safety measures for a new homeowner. You never know who has a key to the previous owner’s house. Whether you get a DIY kit from the hardware store or hire a professional locksmith, ensure your home is secure from day one.

Prioritize Safety: Test All Detectors

Your home inspector likely checked these weeks ago, but batteries can fail. Test every smoke and carbon monoxide detector in the house.

Pro Tip: Place a fire extinguisher on every level or your home, especially in the kitchen and garage. Make sure all family members know how to operate them in case of an emergency.

Perform a Deep Clean

It is much easier to scrub floors and steam carpets while the house is empty. Consider hiring a professional deep-cleaning service to sanitize the interior before your furniture arrives. This provides a fresh, blank slate feeling for your new home.

Tackle Renovations and Repairs

If you plan to paint walls, refinish floors, or install new carpet, do it before you move your furniture in. You’ll save time on prep work and protect your belongings from dust and paint splatters.

Get Quotes: If hiring contractors, aim for at least three quotes to ensure you’re getting the best value.

Home Warranties: Protect your budget from unforeseen appliance failures, consider investing in a home warranty.

Update Your Address

Avoid missed bills or lost packages by updating your address across all platforms:

USPS Mail Forwarding: Set this up online or at your local post office.

Financial Institutions: Banks, credit cards, and investment accounts.

Subscription Services: From streaming apps to meal kits.

With your administrative tasks out of the way, it’s time to step outside and begin the most rewarding part of the process: building a life in your new community.

Connect With Your Community

Once the boxes are mostly unpacked, take a walk around the block. Introduce yourself to your neighbors and explore local parks or shops. Feeling connected to your community is the final step in turning a house into a home.

Enjoy Your New Home!

Whether this is your forever home, or just a stepping stone, Southern Trust Mortgage is here to help you make the most out of your homebuying journey. If you have questions about your mortgage or future refinancing options, reach out to our team today!

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Moving Checklist: 30-20-10 Days Out

By Kiley Belanga
May 4, 2026

Closing on a new home is a major milestone! While the transition can feel overwhelming, a proactive plan ensures your moving day is a celebration rather than a chore. But with the right plan in place you can make you move a smooth and easy experience. Follow this 30-day guide for a stress-free moving experience.

30 Days Out: Declutter and Strategize

With one month to go, your goal is to lighten the load. Moving items you no longer need costs time and money, so it’s better to start with a clean slate.

Go through closest, drawers, and the garage (if you have one). Categorize items into keep, donate, or sell.
When you visit your soon to be home measure your new floor plan to ensure your current furniture will fit the space.
If you aren’t planning a DIY move, book your moving company now. Professional movers fill their schedules weeks in advance, especially for weekend slots.

Pro Tip: Start gathering supplies early. Beyond tape and bubble wrap, check local community groups for free recycled boxes to save on moving costs.

20 Days Out: Deep Packing and Logistics

Now is the time to get serious about packing. Start with non-essentials like seasonal clothing, books, and home décor.

Label boxes by room and priority. Place heavier items at the bottom and fragile items on top.
If you’re embarking on a long-distance move, take your car in for a tune-up. The last thing you want is a breakdown on moving day.
Contact your service providers to schedule the transfer of electricity, gas, and water. Set these to activate on your closing date so you aren’t moving into a dark house.
Visit the USPS website to set up official mail forwarding and update your billing address for credit cards and subscriptions.

Beyond the Post Office: Who Else Needs Your New Address?

Forwarding your mail the USPS is a great first step, but it’s a temporary fix. Take an hour this week to update your address directly with these institutions:

Employer & Payroll: Ensure your next W-2 or paycheck goes to the right place

Insurance Providers: Your auto, health, and life insurance policies need your new location to ensure coverage remains valid.

Bank and Investment Accounts: While your credit cards are critical don’t forget retirements accounts or 401k providers.

The DMV: Most states require you to update your driver’s license address within 30 days of a move.

10 Days Out: The Final Countdown

You’re in the home stretch! Focus on the “live-in” essentials and preparing the home for its next occupants.

Pack a suitcase or clear bin with everything you’ll need for the first 24 hours: toiletries, chargers, basic tools, bed linens, and a few snacks.
As rooms empty out, wipe down baseboards and vacuum floors. It’s a courtesy to the new owners and ensures you don’t leave anything behind in a dark corner.
Empty the refrigerator of perishables and ensure all trash is scheduled for final pickup.

The Final 7 Days

As the countdown hits the one-week mark, the focus shifts from packing to logistics and living in the transition.

Confirm with the Pros: Call your moving company or truck rental one last time. Confirm the arrival window, the address of your new home, and any specific parking instructions for the truck.

The Essentials Grocery Run: Buy easy-to-eat, non-perishable snacks and paper plates for the first 48 hours. You won’t want to dig through boxes for a dinner plate or spend your first night grocery shopping.

Final Utility Check: Triple-check that your internet and cable are scheduled for installation. In a world of remote work, having wi-fi on day one is often just as important as having water!

Prepare Your Pets and Kids: Moving is a major disruption for the littlest members of your family. Pack a separate bag for them with familiar toys, favorite snacks, and any necessary medications to keep them comfortable during the chaos.

Moving Day

Perform one final walkthrough, lock the doors, and hand over the keys. Congratulations! You’re officially ready to start your next chapter.

The Closing Countdown: Red Flags to Avoid During Closing

While you are busy packing boxes, your mortgage lender is busy finalizing your loan. To make sure your loan stays on track for closing, avoid these four common pitfalls leading up to your move.

Don’t Make Large Purchases: It’s tempting to buy a new sofa or appliances on credit before the move. However, new debt changes your debt-to-income ratio, which could jeopardize your loan approval.

Don’t Open or Close Credit Accounts: Even if you’re just trying to consolidate debt, avoid opening new credit cards or closing old ones. These actions can cause sudden fluctuations in your credit score.

Don’t Change Jobs: Lenders look for stability. If you change careers or switch from a salaried position to a 1099/contract role during closing, it may require a brand-new manual underwriting process, delaying your move.

Don’t Make Large, Undocumented Deposits: If you receive a cash gift or move large sums of money between accounts, keep a paper trail. Lenders must source all funds used for your down payment and closing costs to comply with federal regulations.

At Southern Trust Mortgage, we’re here for more than just the loan, we’re here for the journey home. If you have questions about your upcoming closing or are ready to start your next application, reach out to our team today!

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Mortgage Rate Locks: How to Secure Your Interest Rate

By Kiley Belanga
April 30, 2026

Mortgage Rate Locks: How to Secure Your Interest Rate

If you’ve ever applied for a mortgage or followed the housing market, you know that interest rates are the most critical factor in your homebuying journey. Mortgage rates fluctuate daily; even a slight shift can mean a difference of hundreds of dollars in your monthly payment.

That’s why lenders watch rates closely to advise borrowers of when to lock in. Read on to learn about what a rate lock is, what they are, why it matters, and how to decide between locking or floating your rate.

What is a Mortgage Rate Lock?

Once you begin the mortgage process, your interest rate can still change daily, even after your initial quote. To avoid any surprises at closing, your loan officer can lock your rate. This is a guarantee from your lender that your interest rate will not change for a specific period, given that your loan closes within that timeframe and there are no major changes to your application.

How Long Does a Rate Lock Last?

Most rate locks stay in effect for 30 to 120 days, depending on your lender and loan program. Your lock will be conditional based on your lender’s guidelines. If your lock expires before you close, you may have to pay a fee to extend or risk losing your rate to current market conditions.

The Alternative: What Does it Mean to “Float” a Rate?

If you choose not to lock, you are “floating” your rate. This means that you will receive whatever the market interest rate is at the time of your closing.

The Risk: Your rate could be higher than what was quoted during pre-approval.

The Reward: If market rates drop significantly while you are under contract, you could secure a lower payment.

What if Rates Drop After I Lock? (The Float-Down Option)

Many lenders offer a float-down option. If interest rates drop after you’ve locked but before you close, you can float your rate downwards to match the new market low. Keep in mind that lenders usually have specific rules for float-downs, and you may also have to pay a fee if you do float-down your rate.

To Lock or To Float?

If you are in the process of buying your home, deciding on locking your rate depends on your budget and the current economic climate.

Strategy	Best For…	Primary Benefit
Rate Lock	Rising rate environments or strict budgets.	Predictability and peace of mind.
Floating	Downward trending markets.	Potential for a lower monthly payment.

Professional Guidance for Your Mortgage

Degerming the perfect moment to lock your rate can be stressful. Our loan officers stay up-to-date on market trends and will provide personalized advice based on your unique financial situation.

Ready to get started? Contact us today!

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Real Estate Marketing Strategies: Generate Leads in Today’s Market

By Wendy Lewis
April 22, 2026

Real Estate Marketing Strategies That Actually Generate Leads in Today’s Market and Boost Business Growth.

Missed our recent Agent Hangout? Here’s what’s working right now and how agents are turning everyday activity into real conversations and closings.

If you’re a real estate agent right now you are probably having these feelings of what can I do differently. You are posting each day, you are trying to stay visible on social and you are adding content each day checking that marketing box.

But the real question is…

Are your posts turning into conversations?

Because in today’s market, the agents who are growing their business aren’t just more visible. Instead, they are more intentional.

That was the theme of our recent Southern Trust Mortgage Agent Hangout, and it’s something we’re seeing across multiple markets: The agents winning right now are focused on one thing: starting conversations.

Social Media for Realtors: Focus on Conversations, Not Just Content

Most real estate social media posts are built for visibility. But visibility alone doesn’t create business. That’s why the agents who are growing right now are doing something different.
Instead, they’re sharing insight and creating curiosity through their content.

If you want to generate real estate leads in today’s market, your content needs to create a conversation instead of just filling space.

Instead of:

Just listed
Market update
Interest rates are changing.

Shift to:

Curious what your home is actually worth right now vs. online estimates?
If you could buy before you sell in today’s market, would you want to see how that works?

This small change moves your content from passive to productive and as a result your content is gaining more attention, more comments and more organic results.

Top Realtors Are Creating Opportunities to Stand Out.

There’s more noise than ever in real estate marketing. Successful agents stand out by sharing insight, not just posting homes.

Examples:

What a deal I found this week; share the story
Where buyers are actually finding the real value right now
What I told my first-time buyer in today’s market

Creating experiences and conversations shows you as a busy professional, not just another agent posting listings.

And that’s what drives conversations.

How to Generate Off-Market Opportunities

Housing inventory continues to be one of the biggest challenges in today’s market.

Top agents aren’t waiting for listings. They’re creating opportunities.

Try this:
“I have a buyer looking in [your market] between [price range] with a flexible timeline. Is anyone thinking about selling or knows someone who might be?”

This approach:

Activates your network
Creates off-market opportunities
Reinforces that you’re actively working with buyers

It’s simple but effective! Use your social fans to create conversation.

Real Estate Marketing Strategy Content That Converts: Build Curiosity First

Most agents give information. Top agents create curiosity.

Instead of:
Here are the top homes under $500K this week

Try:
“I spent the morning reviewing homes under $500K. Want me to send you the best opportunities?”

That shift:

Creates conversation & comments
Inspires thinking
Leads to calls, messages & direct leads

And those conversations are what convert.

The Fastest Way to Get More Real Estate Conversations

If there’s one thing to focus on, it’s this:

Reduce friction.

A lot of agents are asking questions that feel like either a yes or no question and as a result people hesitate to respond. So instead of, Are you ready to buy or sell?

Try:

Would it help to see what your options look like right now?
Want a quick breakdown of what’s possible in today’s market?

This lowers pressure and boosts response and also creates curiosity and thinking.

What This All Means for Agents Right Now Building Their Real Estate Marketing Strategy?

The market is shifting.
However, the opportunity is still strong.
That’s why the agents who are growing right now are consistent in their outreach.

If you missed our Agent Hangout, this is exactly what we covered: real strategies that agents are using right now to generate business.

You can catch the full session here: Youtube Channel

If you are looking for a strategy built around your specific business and your sphere of influence; here’s how we can help you grow.

Through our Partner Perks platform, we collaborate with agents to:

Build consistent lead flow.
Create co-branded marketing strategies.
Turn databases into repeat and referral business.
Stay in front of clients long after closing.

If you’re looking for a more intentional way to grow your business, this is where we can help.

Explore more here: southerntrust.com/partner-perks

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Adjustable-Rate Mortgages (ARMs): What Homebuyers Should Know

By Kiley Belanga
April 16, 2026

To put it simply, an adjustable-rate mortgage (ARM) is a home loan option that offers a fixed rate for an initial set period. Once the introductory period ends, the rate is then adjusts periodically based on current market conditions until the next adjustment date.

While fixed-rate mortgages have long been the standard, ARMs are returning to the forefront in today’s high-rate environment. Because they often start with a lower interest rate than 30 year fixed loans, they can be a strategist tool for the right buyer.

ARM vs Fixed-Rate Mortgage: What’s the Difference?

An adjustable-rate mortgage has an interest rate that fluctuates throughout the loan term. The rate during the introductory is fixed until the adjustment period, where the rate changes based on the market. On the other hand, fixed-rate mortgage interest rates stay the same throughout the entire term of the loan.

Feature	Adjustable-Rate (ARM)	Fixed-Rate Mortgage
Interest Rate	Changes over time after initial period.	Stays the same for the life of the loan.
Initial Payment	Typically lower than fixed-rate options.	Typically higher than an ARM’s intro rate.
Risk Level	Higher (payments can increase later).	Lower (predictable monthly payments).

Common Types of Adjustable-Rate Mortgages

ARM names are usually expressed as two numbers (Example: 5/1). The first number is the length of the initial fixed-rate period. The second number is how often the rate adjusts after that.

5/5 ARM: Fixed for 5 years, then adjusts every 5 years.

3/1 ARM: Fixed for 3 years, then adjusts for every 1 year.

Other types of ARMs include: 5/1, 7/1 and 10/1 ARMs.

During the adjustment period your rate can either go up or down depending on the market at the time.

The Break-Even Math: Why Consider an ARM?

Many buyers choose an ARM for the short-term savings. For example, on a $400,000 loan, a 0.75% difference in rate could save you roughly $200 per month. Over a 5-year introductory period, that is $12,000 in total savings compared to a fixed-rate loan. If you plan to sell or refinance before those 5 years are up, that is money back in your pocket.

How is Your New Rate Determined? (The Index and Margin)

When the fixed rate period ends, your new rate is calculated using two components.

The Index: A benchmark interest rate set by neutral third parties based on the economy.

The Margin: A set percentage added by your lender that stays the same for the life of the loan.

Index + Margin = Your New Interest Rate

Rate Caps: Your Built-In Protection.

To prevent your payment from skyrocketing during your adjustment period, ARMs include interest rate caps. These limits dictate how much your rate can move.

Initial Cap: Limits how much the rate can rise the very first time it adjusts

Periodic (Annual) Cap: Limits how much the rate can change from one adjustment period to the next.
Lifetime Cap: Sets a ceiling for the maximum interest rate you will ever pay on the loan.

These protections can help ease some of the uncertainty that surrounds adjustable-rate mortgages.

Pros and Cons of an ARM

Pros:

Lower Initial Payments: Save money during the first few years of homeownership
Flexibility: Great for buyers who plan to move or refinance before the adjustment period
Rate Drops: If the market rates decrease, your mortgage payment could actually go down without a refinance.

Cons:

Market Volatility: Your payment could increase significantly after the introductory period.
Complexity: ARMs are more difficult to understand and compare than fixed-rate loans.

Can you Refinance an ARM?

Absolutely. Most homeowners choose to refinance their ARM into a fixed-rate mortgage if they decide to stay in the home longer than expected or if interest rates drop significantly during their introductory period.

Who is an ARM Best For?

An ARM might be the right choice if:

You plan to sell the home within 5 – 7 years.
This is a starter home rather than a forever home.
You expect a significant increase in your income before the adjustment period begins.
You want to maximize your monthly cash flow in the short term.

Ready to Find the Right Mortgage?

Choosing between an ARM and a fixed-rate mortgage depends entirely on your financial goals and how long you plan to stay in your home.

Contact us today! Our experienced loan officers are ready to help you run the numbers and find the perfect loan to fit your needs.

Learn more about ARMs by visiting the U.S. Department of Housing and Urban Development’s website.

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How Much House Can I Afford? A Guide to Calculating Your Budget

By Kiley Belanga
April 2, 2026

It’s the age-old question every homebuyer asks: How much house can I actually afford? If you have been wondering how to crunch the numbers, you’ve come to the right place.

Ideally, you should speak with a mortgage loan officer to help determine your specific price point, but we understand you might not be ready to take that step just yet. Here we will break down exactly what lenders factor into their consideration when qualifying you for a mortgage.

How to Determine Your Homebuying Budget

To get a realistic view of your buying power, you first need to look at your current spending habits compared to your gross income. This helps you understand your debt-to-income (DTI) ratio. Once you have an idea of your baseline budget, you can begin looking into how a monthly mortgage payment, home maintenance, and insurance will factor into your long-term financial goals.

Monthly Costs to Consider When Buying a Home

Mortgage Payment (Principal & Interest): This is the core cost of your loan and likely your largest monthly expense.

Mortgage Insurance (PMI/MIP): Depending on your loan type and down payment amount, you may need to pay a monthly insurance premium. This protects the lender but adds to your monthly mortgage total.

Homeowner’s Insurance: Your lender will require you to maintain insurance n the property. This payment is typically “escrowed” meaning it is included in your monthly mortgage statement.

Utilities: Remember to account for recurring costs like electricity, water, sewer, and gas.

Maintenance and Repairs: Owning a home comes with maintenance and unexpected repairs. It’s a good rule of thumb to keep a separate “house fund” for when these inevitable cost come up.

Additional Costs: Some neighborhoods require an HOA fee or Condo fee. Your real estate agent will help you identify these fees before you make an offer.

While this list may seem long, keep in mind that mortgage insurance and homeowner’s insurance are usually bundled into your single monthly mortgage payment, making it easier to manage your cashflow.

Factors That Affect Your Borrowing Power

Current Interest Rates:

Interest rates are one of the most significant factors in determining your borrowing power. Higher rates result in higher monthly payments, which can sometimes price buyers out of homes they could otherwise afford.

If current interest rates are a concern, you might consider an Adjustable-Rate Mortgage (ARM). These loans offer a reduced interest rate for an initial set period, which can help homeowners ease into their monthly payments before the rate adjusts based on market conditions.

Your Credit Score:

Your credit score is a key metric lenders use to set your interest rates. Generally, higher scores lead to more favorable rates. However, if your credit is less than perfect, don’t worry! Southern Trust Mortgage’s in-house Credit Specialist, Mike McNamara, has years of experience helping borrowers improve their scores to secure the best possible terms.

Debt-to-Income (DTI) Ratio:

Your lender will look at your DTI Ratio to see how much of your monthly income is already committed to other debts (like car loans or student loans). Every loan program has different DTI requirements; some offer more flexibility than others depending on your overall financial profile.

How Much Should I Borrow?

There is a big difference between how much you can borrow and how much you should borrow. Your lender will qualify you for a maximum loan amount, but that doesn’t mean you have to spend it all. Buying at your absolute limit can lead to becoming “house poor”. This is a situation when your housing costs are so high that you struggle to save money or enjoy other activities.

This is where your pre-determined budget becomes invaluable. Since you’ve already crunched the numbers, you likely have a comfort zone for your monthly payment. Share this number with your loan officer; they can work backward from that payment to find the perfect home price point for your lifestyle.

Ready to run the numbers? Determining your budget is the first step toward homeownership, but you don’t have to navigate the math alone. Whether you want to get started with a pre-approval or just want to run the numbers, give us a call.

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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.

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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!

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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.

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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