Your Real Estate Mama
Get practical tips, expert advice, and encouragement for home buyers and sellers on Your Real Estate Mama—the go-to weekly podcast for all things real estate.
Hosted by Jan Scott, a seasoned real estate broker with over 35 years of experience and 25 personal moves, this podcast offers quick, bite-sized insights into the home buying and selling process. Whether you're a first-time buyer or experienced seller, Jan’s knowledge, heartfelt stories, and Southern charm will guide you every step of the way.
Stay connected by following us on Facebook @YourRealEstateMamaPodcast for updates, tips, and more. Got questions? Reach out to Jan at jan@yourrealestatemama.com—she’s always happy to help!
Your Real Estate Mama
Renting with a Plan: Prep for Buying Your First Real Estate Home
Dreaming of owning a home but still stuck renting? In this episode of Your Real Estate Mama, host Jan Scott reveals how you can turn that dream of homeownership into reality—even while you’re still renting! Jan breaks down three key steps to prepare for buying your first home: improving your credit score, tackling debt, and building savings.
With practical advice and inspiring real-life success stories, Jan shows you how to smoothly transition from renter to homeowner. Tune in and start your journey toward homeownership, making sure this lease is your last one ever!
Follow for Weekly Real Estate Tips and Expert Advice!
Looking to buy or sell a home? Tune in every week for real estate tips, expert advice, and real-life stories to help you navigate the housing market with confidence! 🏡 Plus, get a little mama wisdom to make your home journey smoother.
Have Real Estate Questions or Comments?
I’d love to answer them in an upcoming episode! Don’t hesitate to reach out with your real estate questions, whether it’s about buying, selling, or getting your home ready for the market.
Need a Trusted Realtor?
Connect with me to find a trusted and experienced realtor in your area. Whether you're a first-time home buyer or a seasoned seller, I’m here to guide you every step of the way.
Email: jan@yourrealestatemama.com
Follow on Facebook: @YourRealEstateMamaPodcast
Renting with a Plan How to Prep for Buying Your First Home
===
[00:00:00] Introduction to Home Ownership
---
[00:00:00] Today, I'm going to break down how to turn your dream of home ownership into a reality with a simple step by step plan. How to turn those rent checks into your own set of keys. Let's get to it.
[00:00:20] Welcome to Your Real Estate Mama
---
[00:00:20] Hey, come on in and welcome to another episode of Your Real Estate Mama with me, Jan Scott. Every week, I share tips, know how, and encouragement for buyers and sellers. My mission is to educate, inform, and help you make wise choices on your real estate journey. I've been wrangling the real estate market for over 35 years.
[00:00:44] Along with this gray hair comes a whole lot of wisdom. Welcome. And if you're new to the podcast, I sure hope you subscribe.
[00:00:53] Renting with a Plan
---
[00:00:53] Today's episode is called renting with a plan, how to prep for your first home, and I'm going to break [00:01:00] it down into three simple key steps you can take right now, even while renting.
[00:01:06] To get ready to buy your first home. Now I know home ownership can feel like a big old mountain to climb, especially if you're renting and thinking, where do I even start, but here's the good news. You can start working towards buying your first home. Right now, even if you're still a renter and you just signed a 12 month lease, even if you have debt, it's all about planning and getting your financial house in order so that when the time is right, you're ready to go.
[00:01:40] And today I'm sharing three major steps to help you on this journey. We're going to talk about your credit score. Your debt and savings. And let's break it all down.
[00:01:52] Understanding Mortgage Terms
---
[00:01:52] And if you've been searching online about getting a mortgage, you probably come across a ton of confusing terms. Fannie Mae, Freddie Mac, PMI, MIP, VIFA, dig fees, down payments, closing costs, title insurance, homeowner's insurance, fixed versus variable rates.
[00:02:07] Is your head spinning yet? Well, if you're a newbie, Meaning you've never bought a home before, then it probably is. But don't worry, you're not alone. Today, I'm going to break down how to turn your dream of home ownership into a reality with a simple step by step plan. Know that you don't have to navigate this alone.
[00:02:32] This is one of the most important decisions of your life. Don't listen to well meaning friends or family who are not in the business. This business changes constantly. Seek wisdom and knowledge from professionals.
[00:02:48] Building Your Home Buying Team
---
[00:02:48] If you don't know an agent you can trust, send me an email. I can connect you with the perfect one anywhere in the country.
[00:02:55] A good agent will have a solid working relationship with the lender [00:03:00] who understands how to help renters transition into home ownership. Each one of these meetings will take about 45 minutes. And those 90 minutes could completely transform your home buying experience. Your team will provide you with a roadmap and action steps to follow.
[00:03:19] They'll check in with you every 30 days to keep you on track. And here's the best part. This planning period, it won't cost you a dime. Realtors and lenders only get paid when you actually buy a home. This process isn't deciding if you can buy a home. It's about figuring out when. Some of you might be ready in a year and others might need to.
[00:03:44] The important thing is to have your team and a plan. Hey, if you're in a six to 12 month lease, don't wait till it's up. This process takes time. Start now. With rents up 30 to 35 percent since 2020, [00:04:00] buying a home isn't just a purchase. It's a rent replacement strategy. I understand down payments are challenging right now.
[00:04:09] It's harder than ever to save money. So let's explore creative options for low down payments and to replace that rent payment.
[00:04:18] Step 1, Improving Your Credit Score
---
[00:04:18] So if you're renting now and planning to buy a home, step one is to focus on improving your credit score. Now, I know it doesn't sound glamorous, but that little number is super important when you're looking to buy a home.
[00:04:31] Your credit score is like your financial report card. It tells lenders how responsible you are with money and the better your score, The easier it is to get approved for a mortgage, you get a lower interest rate, you'll get lower PMI, and you're asking, what is PMI? That's private mortgage insurance, and that is the insurance that a lender will charge on your loan if you put less than 20 percent down.
[00:04:59] So, the [00:05:00] higher your credit score, the lower that is. Pay your bills on time, every time. Set up auto pay if you need to, so you will never miss a payment. If you've got credit cards, try to keep the balance low, under 30 percent of your limit is a good goal. And don't go out opening a bunch of new credit card accounts.
[00:05:21] Definitely don't go buy a new car. The less debt you're juggling, the better your score. Your credit score is crucial. You want to score above 700. Your lender can help you understand your score and set a target to aim for. They have great ways of helping you get your credit score up. If you need help by following their plan, you will accomplish this in no time.
[00:05:45] Step 2, Tackle Your Debt
---
[00:05:48] Whew, that's a biggie, right? But it's important to remember that most of us have some form of debt, whether it's credit cards, student loans, car payments, [00:06:00] and that's okay. The key is to manage it wisely, especially if you're planning to buy a home. When you go to apply for a mortgage, lenders are going to look at something called debt to income ratio.
[00:06:12] That's just a fancy way of saying how much money you owe compared to how much money you make. If you've got too much debt, lenders might be hesitant to give you a loan. Or they might offer you a loan with higher interest rates. So while you're renting, it's a great time to start paying down your high interest debt.
[00:06:31] I recommend start with the debt that has the highest interest rate. Focus on that first, then work your way down. And listen, y'all, every little bit counts. Even paying an extra 25 or 50 a month towards your debt can make a big difference over time. The goal is to free up your income and show lenders that you can handle monthly payments.
[00:06:55] If your lender does not have the time and patience to help you through this [00:07:00] process, you know what mama says, hit the road, Jack, go find yourself another lender that does.
[00:07:07] Step 3, Building Your Savings
---
[00:07:07] Step number three, building your savings. I know savings can feel hard, especially when you're renting and juggling other expenses, but having some money set aside is critical when it comes time to buy a home, you'll need savings for a down payment.
[00:07:25] It usually runs typically three to 20 percent of the purchase price, depending on the loan you get and all my newbies, 3 percent is what you want to go for because you don't have A lot of money to put down. Plus, you'll want to have a little cushion for closing costs and moving expenses. And let's be real, it's nice to have some extra savings for emergencies too.
[00:07:49] You'll never know when a pipe might bust or an AC goes out. One tip I always give my clients is to treat your savings like a bill. Just like you'd pay your rent or [00:08:00] utilities, put a set amount into your savings account every month, even if it's just 50 or 100. Over time, it'll add up. And if you're looking for ways to boost your savings, consider cutting out a few small expenses, like eating out or that extra coffee, and put that money towards your future house.
[00:08:20] Success Story: Jason and Beverly
---
[00:08:20] In the previous episode, I mentioned Jason and Beverly. They came into my office and I was shocked to hear how much they were paying in rent. I connected them with an excellent lender, we worked through some issues with their loan, and found a home in an area they wanted. The home was listed at 270, 000 and we managed to get them into their first home for less than 12, 000.
[00:08:43] We used a program where the lender covered part of the closing, and the seller also pitched in in closing. Best of all, their monthly payment ended up being 350 less than their rent. 350, y'all! That's a lot of [00:09:00] money for a young couple starting out saving each month. They were thrilled on closing day when I handed them the keys to their new home because they thought they would need a lot more money.
[00:09:11] That was five years ago, and now they're ready to upgrade to a larger home. The equity they built over these past five years will help them move up without draining their savings.
[00:09:22] Recap and Final Thoughts
---
[00:09:22] Let's do a quick recap. Step one, focus on improving your credit score. Step two, tackle that debt, one payment at a time. And step three, start building those savings, even if it's just a little bit each month.
[00:09:38] It's all about taking small, consistent steps to get yourself in the best financial shape possible for home ownership. And let's turn your lease into your last lease ever.
[00:09:50] That reminds me for all my detail loving newbies out there after today's episode I highly recommend checking out my colleague David Sidoni's podcast how to buy a home specifically episode 251 titled how to stop renting and make this your last lease ever.
[00:10:09] Mama Wisdom and Inspiration
---
I always like to close out each episode with some mama wisdom and inspiration Don't let yourself get discouraged or overwhelmed by everything that's required to go through this process.
[00:10:21] Remember, there's help available, and there are good people out there who are more than willing to guide you step by step. I want to take you to Proverbs 4, 11, and 12, and it reminds us, I will teach you wisdom's ways and lead you in straight paths. When you walk, you won't be held back. When you run, you won't stumble.
[00:10:44] This is a promise that when we're faced with big decisions in life. Seeking wisdom and guidance can make the journey smoother and easier than we ever imagined.
[00:10:58] Closing Remarks
---
[00:10:58] Well, that's a wrap. If you enjoyed this episode of Your Real Estate Mama, don't forget to leave a review, rating, or comment on your favorite podcast platform. Feel free to send me an email to jan@yourrealestatemama.com. I love hearing your questions and comments, and I'd be happy to help you find a great real estate agent anywhere you are. Be sure to follow me on Facebook @yourrealestatemamapodcast, until next time y'all take care, happy house hunting and remember you should always listen to your mama!
