Blog | Page 2

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.

Blog | Page 2

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

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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!

Blog | Page 2

How to Improve Your Credit Before Buying a Home

By Kiley Belanga
February 27, 2026

Are you thinking of buying a home but worried your credit score is holding you back? Having less-than-perfect credit does not have to stop you from getting into your dream home.

Know Where Your Credit Stands Before You Begin

It’s never too late to start improving your credit score. However, before you begin, you first need to know where you stand. It’s important to regularly check your own credit reports to ensure that they are accurate and up-to-date.

The three nationwide credit reporting agencies (Equifax, TransUnion, and Experian) offer free weekly access to credit reports. You can access these by visiting annualcreditreport.com. It is important to access each bureau separately through this portal so you can investigate each report individually for errors. As you pull these reports, you might worry that checking your own score will hurt your standing. However, there is a big difference between you checking your score and a lender checking it.

Expert Tip: Do not get your credit score through annualcreditreport.com. Not only will you be charged if you try to obtain your score, but this score also uses a different scoring model than what your lender uses.

Understanding the Difference: Soft Pull vs Hard Pull

Inquiry Type	Soft Pull	Hard Pull
Examples	Background checks, credit monitoring, employer pulls, and annual credit report.	Auto loans, mortgages, and credit card applications.
Effect on Your Score	No, there is no effect on your score.	Yes, this may result in a small, temporary dip.

Review Your Report and Dispute any Inaccuracies

Once you have your reports in hand, your first quick fix isn’t about paying bills, it’s about finding mistakes. When reviewing your credit report keep an eye out for inaccurate information that may be negatively impacting your score. This could include accounts that do not belong to you or incorrect payment statuses.

If you find inaccuracies, you can initiate an investigation with each bureau to have them corrected. Cleaning up your report provides a great starting point to ensure a maximum impact on your scores.

Top Strategies to Boost Your Credit Score

Whether building credit from scratch or re-establishing yourself after some financial mishaps, here are some of the most effective ways to start:

Make On-Time Payments: Payment history accounts for 35% of your FICO® Score. This makes it the most important factor in determining your creditworthiness. If you are having trouble remembering deadlines, consider setting up calendar reminders or auto-pay. Always schedule at least the minimum amount due each month.

Lower Your Credit Utilization: The amount you owe compared to your total credit limit accounts for 30% of your FICO® Score. While many experts suggest keeping your utilization below 30%, it is best to keep it as low as possible. If you have high balances, prioritize paying them down. You can also make multiple payments throughout the month to keep the balance low before your statement date.

Do Not Close Seasoned Accounts: Credit history makes up for 15% of your score. When you close an old account, you lose that account’s available credit and its history. While loan accounts close automatically when paid off, credit cards can stay open indefinitely. Even if you do not use a card often, keep it open and active to maintain your score.

Diversify Your Credit Mix: Your credit mix makes up for 10% of your score. Lenders like to see that you can manage the different types of debt, such as credit cards and installment loans (like an auto loan).
Note: You should never take on unnecessary debt just to build credit, but a healthy variety helps.

Limit New Credit Applications: Opening new credit lines accounts for 10% of your score. Every time you apply for new credit, the lender will run a hard inquiry. To protect your score, limit how many new accounts you open while preparing for a mortgage.

Expert Tip: When shopping for a mortgage a mortgage, multiple inquiries generally have no additional effect on your score for the first 30 days. This allows you to compare rates without penalty.

What Not to do During the Mortgage Process

Now that you have your credit in check, it’s time to start the mortgage application. Once you start the process, your credit will be in a sensitive state. To ensure a smooth closing, follow these tips:

Avoid Large Purchases: Do not buy a new car or furniture on credit until you have the keys to your new home.

Do Not Change Jobs: Stability is key for lenders. A sudden change in employment can require a new review of your file.

Consult Your Lender Before Paying Collections: Sometimes paying an old collection can actually cause a temporary score dip by “reactivating” the account. Always talk to your loan officer first.

How We Can Help: Rapid Rescoring

At Southern Trust Mortgage, we know that timing is everything. If you pay down a balance or fix an error, you do not always have to wait 30 to 45 days for the bureaus to update. Our Credit Specialist, Mike McNamara, can often perform a Rapid Rescore. This process can update your credit profile in just a few business days, potentially helping you qualify for a better rate immediately.

You’re One Step Closer to Buying Your Dream Home!

Having good credit will open many doors when you apply for a mortgage. However, do not let less-than-perfect credit stop you from starting the journey. Southern Trust Mortgage is committed to helping borrowers reach their goals. Our credit enhancement specialist is available to help you improve score and get you into your dream home.

Important Reminder: Protect your privacy before starting the mortgage process visit optoutprescreen.com or call 888-567-8688 to opt out of receiving unsolicited credit offers, eliminate junk mail and prevent you from being sent pre-approval letters in the mail.

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.

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How to Use Your Tax Refund to Buy Your Dream Home in 2026

By Kiley Belanga
February 26, 2026

Turn your tax refund into the key to your dream home! If you are planning to buy a home in 2026, your tax refund could be one of the most beneficial paychecks of the year. While a few thousand dollars may not cover your entire down payment, there are many ways to use your refund to your advantage this tax season.

Give a Boost to Your Down Payment

As mentioned above, your tax refund might not cover your entire down payment, but it certainly can help bridge the gap if you have been waiting to hit your savings goal. Even if you have not reached your target yet, there are still ways to get you into a home!

There are many grants and Down Payment Assistance (DPA) programs designed to help buyers cover down payment and closing costs. Your lender can help review your financial situation to determine which grants and programs you qualify for. Combining these programs with your tax refund can significantly reduce the amount of cash you need to bring to the closing table.

Lower Your Debt to Increase Your Buying Power

One of the key metrics mortgage lenders review is your debt-to-income (DTI) ratio. If your monthly debt payments are too high compared to your income, you may have a difficult time for qualifying for certain loan programs.

Using your refund to pay off a credit card or a small personal loan can lower your DTI. Doing this often improves your credit score and can even help you qualify for a lower interest rate or higher loan amount.

Use Funds Towards Your Earnest Money Deposit (EMD)

Once you are under contract for home, you will likely provide an Earnest Money Deposit. This is a sum of money (usually between 1% and 5% of the home’s purchase price) that proves to the seller you are serious about buying the home.

The money is held in escrow and goes towards your closing costs when you finalize the sale. Please note that if you choose to cancel the sale without a valid legal reason, you may lose your EMD. Your refund is the perfect source for this upfront cost.

Cover the Cost of Professional Inspections

You will likely want to get a home inspection while you are under contract. An inspection tells you if any improvements are necessary and helps you understand the long-term health of the property. Depending on the home, you may want to pay for specialized tests such as:

Sewer Scopes
Radon Testing
Mold Assessments
And more.

These costs can quickly add up. Having your tax refund set aside specifically for these fees provides peace of mind without dipping into your savings.

Costs to Cover After You Close

If you have already secured your home and have money left over, consider putting some of the funds toward these post-closing expenses:

Moving Costs: Professional movers or truck rentals can be expensive.
Rekeying the Home: It is best practice to change all the locks immediately after moving in.
New Appliances: Remember to wait until after you close on your home to make any large purchases. Buying appliances on credit before closing can jeopardize your loan approval.
Emergency Fund: It is a good idea to keep a house emergency fund for unexpected repairs.

Looking Ahead: Tax Benefits of Homeownership

Next tax season, you will be able to enjoy the benefits help homeowners save money. These deductions can often offset the costs of owning a home:

Mortgage Interest Deduction: You can often deduct the interest paid on your mortgage.
Property Tax: State and Local property taxes may be deductible up to certain limits.
Mortgage Points: If you paid “points” to lower your interest rate, these may be deductible.
Energy Credits: You may qualify for credits if you make energy efficient upgrades.

Visit IRS.gov to learn more about tax information for homeowners. Please consult your tax advisor regarding which specific deductions and benefits apply to your situation.

Make 2026 Your Year to Own

Put your tax refund to work towards your future! Contact our team today to see how your refund can help you get the keys to your new home.

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First-Time Homebuyer FAQ: Everything You Need to Know

Buying your first home is an exciting milestone, but it often comes with a whirlwind of questions. Whether you are just starting to save or are ready to tour houses, navigating the mortgage process can feel overwhelming.

By Kiley Belanga
February 19, 2026

To help you navigate this journey, we’ve gathered the most common questions that first-time buyers are asking right now. Use this guide to feel more confident and prepared as you move closer to getting the keys to your home.

How much do I need for a down payment?

One of the biggest myths in real estate is that you need a 20% down payment to buy a home. While 20% is a great goal, it is not a requirement! There are several low down payment options available for first-time and repeat buyers:

Conventional Loans: Can require as little as 3% down.
FHA Loans: Allow for a down payment as low as 5%.
VA and USDA Loans: Often require 0% down for eligible borrowers (military veterans/service members and rural property buyers, respectively).

Note: While a 20% down payment helps you avoid Private Mortgage Insurance (PMI) on conventional loans, you can still secure your home with much less upfront costs.

What is a “Pre-Approval” and why is it so important?

A Pre-Approval is a formal document from a lender that states how much money you are eligible for borrow. This is based on a professional review of your credit history, income, and assets.

In a competitive market, a pre-approval letter shows sellers and agents that you are a serious and qualified buyer. In a competitive market, having a pre-approval letter is often required just to submit an offer.

At Southern Trust, we know how important a pre-approval letter is during your home search. That’s why we offer Priority Approval, a fully underwritten approval letter in 24 hours or less, so that you can make a strong, competitive offer and guarantee a quick closing.

How long does the mortgage process take?

The timeline for buying a home varies for everyone, but once your offer is accepted, the mortgage process typically takes 30 to 60 days.

The entire journey from your initial search to closing day can range from a few weeks to several months. Key factors that can influence your timeline include:

Current market conditions and inventory
Your personal financial readiness
The length of your home search

What are closing costs?

Closing costs are fees associated with finalizing your home loan. These are sperate from your down payment and are due on the day you officially close on your home.

Common examples of closing costs include:

Origination Fees (the cost of processing the loan)
Appraisal Fees
Title Insurance and Attorney Fees
Prepaid Taxes and Homeowner’s Insurance

Typically, you should expect your closing costs to be between 2%-5% of the total loan amount.

How do I find a lender and real estate agent to work with?

The professionals you choose for your “Home Team” will make or break your experience. They will be your biggest advocates, negotiators, and guides.

Ask for Referrals: Talk to your friends, family, or colleagues. Word of mouth from people you trust is an invaluable starting point.

Do Your Research: Look for professionals who specialize in working with first-time buyers in your specific area.

Interview Your Team: Don’t be afraid to ask a lender about their communication or a Real Estate Agent about their experience in your preferred neighborhood.

Ready to start your homeownership journey?

Taking the leap into your first home is a big deal, but you don’t have to do it alone. With the right knowledge and a dedicated team behind you, your goal is well within reach.