Real estate is an imperishable asset, ever-increasing in value. It is the most solid security that human ingenuity has devised.
-Russell Sage
Buying your first home comes with a mix of emotions,
excitement, nerves, and maybe even a little uncertainty. That’s completely normal. The good news? You don’t have to navigate it alone. We’re here to make the process smoother, simpler, and a whole lot less stressful so you can focus on the joy of homeownership, not the jitters.
You might be asking yourself: Am I really ready for this? What if something breaks? Can I afford the repairs? Are all my extra coffees over? You’re not alone. That’s why Southern Trust is here to provide the support and education you need to ease those worries and help you plan for homeownership and those extra lattes you love.
Controlling the Controllable: Budget for the Knowns
When buying a home, excitement often takes over and that’s a good thing! But before you start picking out paint colors or new throw pillows, it’s important to take a step back and focus on what you can control: your budget.
Start with the Essentials
Your mortgage payment will likely be your largest monthly expense, so it’s key to understand how it fits into your overall financial picture. Ask yourself:
Do I have a car payment?
Am I paying for daycare or school tuition?
What are my monthly subscriptions or recurring bills?
Knowing your “must-pay” responsibilities gives you a clearer picture of what’s left for the fun stuff...like furnishings, outings, or yes, even that daily latte.
Set a Realistic Budget
Once you know your fixed expenses, create a spending plan that balances needs and wants. Having this clarity not only eases financial stress, it empowers you to enjoy your new home without secondguessing every dollar.
reasons to own
equity
With every mortgage payment, you're building ownership in something real... your OWN home. Instead of throwing money away on rent, you're growing your personal wealth through equity that can be used later for upgrades, emergencies, or investments.
Unlike rent, which can increase year after year, a fixed-rate mortgage gives you steady monthly payments. That kind of predictability makes it easier to budget, plan ahead, and feel confident in your financial future.
Homeowners may qualify for tax benefits like mortgage interest deductions and property tax write-offs. These savings can add up quickly and put more money back in your pocket each year.
predictable payments tax savings stability
Homeownership offers a sense of permanence. You’re not at the mercy of a landlord’s decision to sell or raise rent, and you can settle into a community knowing you’re putting down roots.
freedom
Paint the walls bright yellow, plant a garden, or adopt three rescue pets it’s your home, your rules. Homeownership gives you the freedom to truly make your space reflect your personality and lifestyle.
Step 1: Get Pre-Approved with Priority Approval
Before house hunting, it’s important to know what you can afford and how competitive your offer can be. With Southern Trust Mortgage’s Priority Approval, you don’t just get pre-approved! You get fully underwritten upfront, often within 24 hours of application. This means less stress, faster closings, and more confidence when you make an offer.
Start by applying through STM Connect.
Your Loan Officer will pull your credit and review your score and debts. You’ll submit documents like W-2s, paystubs, and bank statements. The file goes through initial review.
A credit decision is made in 24 hours or less, additional supporting documentation may be required.
Step 2: The Fun Part – House Shopping
Now the exciting part begins—finding your dream home.
Start by hiring a trusted buyer’s agent to guide you through home showings and negotiations.
Define your must-haves and most-wants to help narrow your search. With your STM approval letter in hand, you’ll have the confidence to act fast when the right home comes along.
Once you find “the one,” your agent will help you write a strong offer. When your contract is accepted, we’ll provide updated payments and loan options based on the final sales price.
Step 3: Offer Accepted – What Happens Next
Once your offer is accepted and the contract is ratified, it’s time to start the path to closing.
You’ll determine your official closing date and work with your STM Loan Officer to lock in your interest rate.
Your agent will help schedule any required inspections.
Home Inspection
A licensed inspector evaluates the home’s condition—from roof to foundation—so you know what you’re buying.
Termite Inspection
Checks for any signs of wood-destroying insects or past damage that may need treatment or repairs.
Appraisal
Ordered by Southern Trust, the appraisal confirms the home’s value for the lender by comparing it to recent nearby sales.
Next, you’ll choose your settlement company and begin prepping for your move—it’s getting real now!
Step 4: The Mortgage Process – From Contract to Closing
Now that your contract is ratified, we move into the full mortgage process. You may be asked to update or provide additional financial documentation.
Once the appraisal is received, underwriting will review the home’s value and findings to finalize your loan structure.
You’ll also need to secure a homeowner’s insurance policy. Our underwriting team will review the coverage to ensure it meets the loan requirements.
Behind the scenes, the underwriting and processing teams are hard at work reviewing documentation, clearing conditions, and ensuring every detail aligns with your loan program.
As closing approaches, our closing department will prepare your final Closing Disclosure (CD) and send the full package to your settlement company.
At the closing table, you’ll bring a certified check for your remaining down payment and closing costs. NOW! Get ready to make your move official.
Step 5: Welcome Home
You made it! The keys are in your hand, and your new chapter begins. After signing your final documents at closing, you’re officially a homeowner. But our support doesn’t stop there. Whether you have questions after move-in, need help with your first tax season as a homeowner, or want to explore future refinance options; we’re here for you.
Take time to settle in, make memories, and truly enjoy your new space. You didn’t just buy a house!!! You built a foundation for your future.
Welcome home, from all of us at Southern Trust Mortgage.
REVIEW REVIEW
The Property
We review the value, condition, and marketability of the home through the appraisal. The home is the loan’s collateral, so it must meet lending standards.
Your Income
We verify your income to make sure you can repay the loan. Stable income from the past two years is key.
Your Job History
Steady employment in the same field is a plus. Frequent job changes can raise red flags unless it's for career growth.
Your Debts
We look at how much debt you have and how it impacts your ability to afford the new mortgage payment.
Your Credit
Your credit report shows your history of repaying debt. Late payments, collections, or bankruptcies may affect your loan approval. Talk to us about any credit issues up front.
Your Assets
You’ll need to show where your down payment and closing costs are coming from. Avoid moving money around or making large purchases during the loan process, as it can cause delays.
LOAN OPTIONS WITH STM
At Southern Trust Mortgage, we believe in matching every buyer with the right loan not a one-size-fits-all solution. Whether you’re buying your first home, building your dream home, or refinancing, we have a wide range of flexible programs to fit your needs.
Conventional Loans
Fixed and ARM terms
HomeReady & Home Possible (up to 97% Financing)
Low Monthly Mortgage Insurance (when putting down less than 20%)
Seller & Lender Paid Buydowns
One Time & Two Time Construction Financing
FHA, VA, & USDA Loans
These government-backed loans are great for first-time buyers or those who need a lower down payment.
FHA: Lower credit score and down payment options
VA: Zero down for qualified Veterans
USDA: No down payment for rural homes
One-time close options for new construction
Renovation loans available too
Niche programs
Medical Professionals
Bank Statement Loans
DSCR (Debt Service Coverage Ratio) for Investors
Primary & Secondary LOW rate ARM program
Extended Locks
Lock & Shop- Lock your Rate while you shop for your home
state bond & Down payment assistance programs
MD, NC, SC, VA State Bonds
Community & First-Time Buyer grant programs
Mortgage Credit Certificates for tax reduction
jumbo financing
Financing up to $3mm
As little as 5% Down for Primary Homes
Primary, Secondary & Investment Options
Fixed & ARM programs
FOR A FOR A
DON’T CHANGE YOUR JOB
If you change jobs before or during the loan process it can create real problems in qualifying for a home loan, particularly if your new job is in a different line of work or at a lower rate of pay. It can also create time delays as the new job will need to be verified.
DON’T CHANGE BANKS OR MOVE MONEY
Moving your money to a new bank interferes with the verification process. It is best to leave your money where it is until your loan closes, unless otherwise recommended by your loan officer.
DON’T DEPOSIT CASH
Don’t deposit any cash or money into your accounts other than funds that can be documented, such as pay checks or gift checks.
DON’T APPLY FOR NEW CREDIT
If you receive invitations to apply for new lines of credit, don’t respond. If you do, that company will pull your credit and this will have an adverse effect on your credit score. Likewise, don’t establish new lines of credit for furniture, appliances, computers, etc.
DON’T MAKE ANY MAJOR PURCHASES OR CLOSE CREDIT ACCOUNTS
Many borrowers make the mistake of buying a new car or making another major purchase without realizing the impact it can have on their ability to buy a home. A new monthly payment can affect the amount you can qualify for and actually make it difficult to get your loan approved.
DON’T FAIL TO DISCLOSE FINANCIAL INFO
Surprises during the loan process can make it difficult for the lender to approve your loan. Disclosure to the loan officer up front allows time to work on potential problems.
WHAT AM I PAYING FOR: mortgage payment
Your monthly mortgage payment is made up of several components This housing expense is commonly referred to as “PITI” or Principal, Interest, Taxes, and Insurance. PMI (see below) and homeowner’s association dues may also make up a portion of your total payment.
PRINCIPAL
The original balance of money loaned, excluding interest. Also, the remaining balance of a loan, excluding interest. Interest is calculated based on the principal.
INTEREST
The charge, in dollars, for the use (loan) of the money.
TAXES
The county/city assessments determine the property tax based on the value of your home.
An “escrow” account, set up by the lender, is a trust account in which a portion of the monthly payment is credited so that funds will be available for the payment of taxes and insurance. An increase in taxes happens as your value increases, changes in your monthly taxes may adjust annually.
HAZARD / HOMEOWNERS INSURANCE
An insurance policy pays for loss on a home from certain hazards, including fire. You obtain homeowner’s insurance from your own insurance agent. The standard policy pays replacement costs, minus depreciation based on actual cash value.
PMI (PRIVATE MORTGAGE INSURANCE)
Depending on the amount of your down payment, you may be required to have PMI (anything less than 20% down usually requires PMI).
fha mip: (mortgage insurance premium)
On most FHA loans, an up-front fee for mortgage insurance, called MIP, is charged. This fee can be financed to keep your closing costs lower. A monthly mortgage insurance payment is made based on the unpaid balance of the loan.
VA funding fee
The VA charges a one time funding fee, which may also be financed (No fee required for disabled vet). First-Time use is usually 2.15% of the loan amount and financed into the principal loan.
ARM (adjustable rate mortgage)
A type of home loan where the interest rate can change over time. It usually starts with a lower fixed rate for a set period (like 5 or 7 years), then adjusts periodically based on market conditions. ARMs can offer lower initial payments but may increase later depending on interest rate trends.
amortization
LOAN LOAN
dictionary
appraisal
A professional estimate of a home’s current market value, typically required by lenders during the mortgage process. Appraisals are based on recent sales of similar homes in the area, along with the property’s condition, features, and location This ensures the home is worth the amount being borrowed and meets guidelines set by FHA, VA, Fannie Mae, or Freddie Mac.
The process of paying off a loan over time through regular monthly payments Each payment covers both interest and a portion of the loan principal.
Appreciation
When your home’s value increases over time, often due to market demand or neighborhood improvements
apr (annual percentage rate)
The APR reflects the true yearly cost of borrowing, shown as a percentage It includes not just the interest rate, but also certain fees and prepaid finance charges, making it a more complete picture of what you’ll pay over the life of the loan
Buydown
A way to lower your mortgage interest rate by paying extra up front.
closing costs
The fees you pay when you finalize your home purchase. This includes things like lender fees, title charges, and taxes
cloud on title
Anything that could cause legal issues with the ownership of a property, eg. unpaid taxes or a lien. These need to be cleared before a home can be sold.
Consideration
Something of value (like money or services) that’s exchanged as part of a contract. It’s what makes an agreement legally binding.
deed
The legal document that transfers ownership of a home from one person to another.
discount points
Optional fees you can pay to your lender to get a lower interest rate. One point equals 1% of your loan amount
down payment
The portion of the home’s price that you pay upfront in cash. The rest is covered by your mortgage loan.
easement
The legal right for someone else to use part of your property, like utility companies running lines through your yard.
equity
The difference between what your home is worth and what you still owe on your mortgage. Equity grows as you pay down your loan or as your home value increases
escrow payment
Part of your monthly mortgage payment that’s set aside to pay for property taxes, homeowners insurance, or other costs when due.
Fixed-Rate Mortgage
A home loan with an interest rate that stays the same for the entire term, your monthly principal & Interest payment remains the same.
Foreclosure
A legal process where a lender takes back the property because the borrower has stopped making payments.
loan estimate
A document you get after applying for a mortgage that outlines estimated interest rates, monthly payments, and closing costs.
Mortgage / Deed of Trust
A legal document that secures your home loan. It gives the lender rights to the property if you don’t repay the loan as agreed.
Mortgage Insurance
Required for FHA Mortgage Loans, MI guarantees the lender that outstanding loan balance will be repaid even if the property is sold at a loss due to foreclosure.
PMI (Private Mortgage Insurance)
Insurance you pay for when your down payment is less than 20%. It protects the lender if you default on your loan
Origination Fee
A fee you pay to the lender for processing your loan It’s typically a percentage of your loan amount
Note
A written promise to repay your loan, including how much you owe, your interest rate, and repayment terms
rate lock
A written agreement that guarantees your interest rate won’t change for a certain period while your loan is being finalized second mortgage
LOAN LOAN dictionary
Settlement/Closing disclosure
A final statement of your loan terms and all the costs of buying your home. You’ll get this at least 3 business days before closing
Title Insurance
Protects you or your lender against problems with the home’s title for example; past ownership disputes or unknown liens that could affect your ownership rights
Underwriting
The lender’s detailed review of your finances, credit, and property details to decide if you qualify for the loan and at what terms
An additional loan that uses your home as collateral, usually with a higher interest rate and shorter term than your first mortgage
thankyou thankyou
We are excited to be part of your journey to make home happen for you!
