She Was Paying $2,200 in Rent—and Wasn’t Sure She Could Buy a Home on Her Own
Shannan had owned a home before.
But this purchase felt completely different.
She was now a single mother of two, renting a furnished home for $2,200 per month and preparing for her lease to end. The home had given her family what they needed during a major transition, but she did not want to sign another lease.
She wanted to purchase a home on her own.
The problem was that she did not know whether she could.
“I think if I had decided to continue to rent, it would have been because I didn’t think I could buy something,” she explained.
That distinction matters.
Shannan was not choosing between renting and buying after reviewing both options and deciding that renting better supported her life. She was considering another year of rent because she assumed homeownership might no longer be available to her.
The first step was not finding a house.
It was finding out whether that assumption was true.
From Buy Back Your Life, Episode 1
This article is based on my conversation with Shannan, a single mother of two who purchased a home on her own after questioning whether her credit, savings and new circumstances would allow her to begin again.
Buying alone felt like entering a black hole
Shannan understood homeownership. She had purchased homes while married.
What she had never done was purchase one alone.
“The buying process is almost like a black hole,” she said. “It’s very confusing.”
You can watch people tour homes on television. You can scroll through listings and estimate monthly payments online. But none of that necessarily explains what happens before the home search begins.
What credit score do you need?
How much money must you have saved?
Should you pay off every credit card first?
Will applying damage your credit?
How do you know which lender to trust?
Shannan believed she needed to have several things resolved before she could even ask whether buying was possible.
Her biggest concern was her credit.
She was so nervous about having it reviewed that she considered extending her lease for another four or five months and using her available cash to pay off all her credit cards before applying for a mortgage.
That plan sounded responsible.
It was also based on assumptions she had not confirmed with a lender.
She thought she needed to pay off every credit card
Many potential buyers delay applying because they believe all debt must be eliminated first.
Shannan thought the same thing.
She was deciding whether to use her savings to pay down her cards before speaking with a mortgage professional. But paying off every balance would have used money she might need for the down payment, closing costs, moving expenses, and emergency savings.
She eventually made what she described as a knee-jerk decision.
She submitted an application.
That one decision gave her access to information she did not have while trying to prepare on her own. She asked to speak with a credit specialist and explained exactly what concerned her.
The conversation changed the direction of her search.
Instead of guessing what needed to happen, she could evaluate her credit, savings and debts based on the requirements of an actual mortgage.
That does not mean every buyer should apply before reviewing their finances. It means preparation should be based on accurate information.
Paying down debt can improve a buyer’s financial position, but which balances to address—and how much cash to preserve—depends on the buyer’s credit profile, debt-to-income ratio, savings and intended loan.
The best strategy is not always to pay off everything.
It is to understand what is preventing you from qualifying, if anything, before moving your money.
A credit-building decision had an unexpected result
Before applying for the mortgage, Shannan had opened a secured credit card because she wanted to improve her credit.
She believed she was taking a responsible step.
Then she saw her score decline.
The new account and credit inquiry affected her profile in a way she had not anticipated. That made her even more nervous about allowing a mortgage lender to review her credit.
Her experience shows why credit decisions should not be made in isolation when someone expects to purchase soon.
Opening a new account, closing an established account, increasing balances or moving debt can change a credit profile. The effect varies, and a decision that appears helpful may not improve the mortgage score as quickly as expected.
Before changing your credit, ask:
- Which credit scores will the lender use?
- Are there errors that need to be corrected?
- Which balances are affecting qualification?
- Should available cash be used for debt or preserved for closing?
- Could opening or closing an account affect the application?
- How soon do you plan to purchase?
Shannan did not need perfect credit.
She needed to understand the credit she had and which mortgage options could work with it.
She learned that one lender was not the only lender
Shannan initially applied with one mortgage company.
As the process continued, some of the information she received did not make her feel completely comfortable. She had more questions, so she began researching.
That research helped her understand that she could compare lenders.
She submitted additional applications and reviewed the financing options available to her. Because of her credit profile and the amount she had available for a down payment, she focused on FHA financing, which allowed her to consider a down payment of approximately 3.5%.
The interest-rate quotes she received ranged from approximately 6.25% to 6.99% at the time. On a purchase near $300,000, the estimated monthly payments ranged from a little over $2,200 to almost $2,400, depending on the rate, lender fees, mortgage insurance and other terms.
The difference between those offers was not simply the advertised interest rate.
Some options required discount points. One lender offered credits that could reduce the amount Shannan needed at closing. The seller was also willing to contribute toward her closing costs.
That changed the comparison.
A lower rate may require the buyer to pay more upfront. A slightly higher rate may come with credits that preserve savings. The best option depends on how long the buyer expects to keep the loan, how much cash is available and which monthly payment remains comfortable.
Shannan did not choose a lender based on one number.
She considered the complete financing package.
She was approved for more than she wanted to spend
Shannan was approved for as much as $350,000.
At first, she expected to use most of that amount.
Then she calculated the payment.
She looked at how much of her income would go toward housing and what she still wanted her budget to support. She wanted to save, travel and maintain room for the rest of her life.
A lender’s approval represents the maximum amount the lender may be willing to finance under its guidelines.
It does not tell the buyer what payment will feel comfortable every month.
After reviewing the numbers, Shannan lowered her personal ceiling. She decided that approximately $325,000 was the most she wanted to spend, with many of her calculations based on a purchase closer to $300,000.
That was not reducing the goal.
It was protecting it.
Homeownership should create stability without making every other financial decision more difficult. A buyer who spends less than the approved amount may have more room for maintenance, emergencies, savings and the life they want outside the house.
Her rent and projected mortgage payment were similar
Shannan was already paying $2,200 per month in rent.
The home was furnished, which had been valuable during her transition. It allowed her and her children to move in without immediately buying a couch, dining table and other household items.
She did not consider the rent unreasonable for what the home provided.
But her lease was ending, and another year of rent would not move her closer to owning a home.
The mortgage estimates she received were in roughly the same range as her current rent. Buying would also require property taxes, homeowners insurance, mortgage insurance, repairs and closing expenses, so the comparison was not as simple as replacing a $2,200 rent payment with a $2,200 mortgage payment.
Still, the numbers showed her something important:
The monthly cost of buying was not as far beyond her reach as she had assumed.
Continuing to rent would have been easier in the short term because it was familiar. Buying required an application, financial review, contract, inspection and closing.
But familiarity was no longer enough.
Shannan was ready for her housing payment to support her next chapter.
The next chapter did not look like the previous one
One of the hardest parts of Shannan’s decision had little to do with credit or interest rates.
It was adjusting her expectations.
She had previously been married and had purchased a larger home with a partner. Buying by herself meant working with one income, a different budget and a different picture of what home should look like.
“There are a lot of emotions that go along with that,” she explained. “Just feeling like this isn’t where I thought my life would be. It’s not what I dreamt of.”
The home she selected had less square footage and a smaller kitchen than the homes she had owned before.
Those differences could have felt like evidence that she was moving backward.
Instead, Shannan began asking a better question:
What do my children and I need now?
They needed enough space. They needed a backyard. Her daughter wanted a two-story house. Shannan wanted a porch, a welcoming neighborhood and a place where her family could establish roots.
The house did not recreate her former life.
It supported the one she was building.
The house had been waiting for six months
Throughout her year of renting, Shannan had been thinking and praying about the kind of home she wanted.
She kept returning to one feature:
A porch.
Then she noticed a house that had been sitting on the market for months. She watched it online and returned to the listing repeatedly.
The home had the porch.
It was also on a vibrant street close to the town center. The neighbors participated in holidays and community activities. When Shannan visited, people were outside and welcomed her warmly.
She could picture her children growing up there.
Her daughter had asked for a two-story home. This house had that, too.
Shannan still toured other properties. She reviewed numerous homes online and visited approximately five in person because she wanted to be confident that she was choosing the house for the right reasons.
But she kept returning to the same one.
“It just felt like this was home,” she said. “It was the place I needed to be.”
She offered less than the asking price
Because the house had been listed for approximately six months and the price had already been reduced, Shannan decided to offer less than the seller was asking.
The seller accepted without making a counteroffer.
She submitted the offer on a Friday and received the acceptance on Sunday.
That outcome was not guaranteed simply because the home had been on the market longer than expected. But the listing history gave Shannan information she could use when deciding how to structure the offer.
The negotiations involved more than price.
The seller also agreed to contribute toward closing costs, reducing the amount Shannan needed to provide herself. Her lender offered credits as part of the loan package, and she planned to borrow from her 401(k) for part of the purchase funds.
Each of those decisions affected her finances differently.
Borrowing from a retirement account is not free money. Repayment requirements, loss of potential investment growth and tax consequences should be understood before proceeding.
For Shannan, it was one component of a larger strategy designed to preserve cash, manage the monthly payment and avoid paying discount points she did not feel were necessary.
Understanding the contract helped her breathe
Shannan did not want to sign documents she did not understand.
We reviewed the purchase contract line by line, discussed what the terms meant and gave her room to ask questions.
That mattered because an accepted offer creates real obligations.
The contract addresses deadlines, deposits, inspections, financing, closing costs, repairs and the circumstances under which either party may have the right to terminate.
Shannan wanted to know what she was agreeing to before committing.
“In general, that’s the theme of my life right now,” she said. “Be sure you know what you’re getting yourself into.”
That is good advice for any buyer.
You should understand both the purchase contract and the loan estimate. If something is unclear, ask before signing. The purpose is not to memorize every paragraph. It is to understand the financial commitments, important deadlines and risks.
The inspection revealed a water-line problem
The process did not become effortless after the offer was accepted.
The home inspection identified an issue with a water line.
The sellers had already agreed to contribute toward Shannan’s closing costs and initially indicated that they did not want to make additional repairs.
Shannan was understandably nervous.
But the problem would not disappear if the sellers returned the property to the market. They would likely have to disclose the known issue to another buyer, and the house had already been listed for an extended period.
We communicated the concern and explained why it needed to be addressed.
The sellers agreed to repair it.
That did not happen because every seller must accept every repair request. Inspection negotiations depend on the contract, the problem, market conditions and what both parties are willing to do.
It happened because Shannan had information, representation and a reasonable basis for the request.
An inspection should not be treated only as a list of items to demand from a seller. It helps the buyer understand the property and decide which concerns are significant enough to affect the purchase.
Excitement and fear existed at the same time
When Shannan decided to make the offer, she felt excited.
She was entering a process she had not believed was open to her.
She also felt anxiety.
Would she regret the decision in a year? What if she later wanted to live somewhere else? Was she making the right choice for herself and her children?
Those questions did not mean the purchase was wrong.
They meant the decision mattered.
Shannan reminded herself that buying a house did not take away her ability to make future choices. She was not trapped. If her life changed, she could evaluate her options then.
She also returned to what she knew.
The home checked the boxes she had identified. It fit the budget she had established. The neighborhood offered the environment she wanted for her children. The porch, the stairs and the welcome she felt were not random details.
They reflected the vision she had carried throughout a difficult transition.
Smaller did not mean less
Shannan’s new home was not as large as one she might have purchased with two incomes.
The kitchen was smaller. The square footage was different. Some expectations had to change.
But the home offered something more important than recreating the past.
It offered peace.
“What will fill that home and that square footage is love,” she said.
She could picture her children running up and down the stairs. She could imagine them enjoying their rooms and growing within the community. She could see herself sitting on the porch she had wanted for so long.
Shannan described the property as a forever home—not necessarily because she believed she could never purchase anything else, but because it was hers.
It was a place where she could put down roots.
It was also the first property in what she intends to continue building.
The real obstacle was not knowing what was possible
Shannan did not begin the process with perfect credit, a 20% down payment or complete confidence.
She began with questions.
She learned that she did not necessarily need to pay off every credit card before applying.
She compared lenders instead of accepting the first offer without understanding it.
She evaluated the rate, payment, points, lender credits and closing costs together.
She spent less than the maximum amount she was approved to borrow.
She adjusted her expectations without abandoning what mattered to her family.
She reviewed the contract.
She worked through the inspection issue.
None of those steps required her to know everything before she started.
They required her to ask, research and make decisions based on real information.
That is the most relatable part of Shannan’s story.
Many renters are not continuing to rent because they have been told they cannot qualify.
They are continuing because they are afraid to ask.
Shannan did not need her old life back
Buying alone was not an attempt to reproduce what Shannan had when she was married.
It was an investment in who she was becoming.
She was a single mother creating stability for two children. She was someone learning to trust her own financial decisions. She was building a home based on what her family needed now rather than measuring herself against what she once had.
That is not starting over from nothing.
It is starting again with experience.
If Shannan had allowed fear of her credit—or the belief that buying alone required more than she had—to make the decision, she would have signed another lease.
Instead, she applied.
That application did not obligate her to purchase a home. It gave her the information she needed to decide whether she could.
The answer was yes.
Are you assuming you cannot buy?
You do not need to know every answer before you begin. You need a clear understanding of your credit, savings, debts, available financing and the monthly payment that fits your life.
Westchester Realty can help you identify the questions to ask, connect with qualified professionals and build a homebuying strategy based on your actual circumstances—not assumptions.
Not sure where you stand? Take our free Homeownership Assessment to see which options may fit your situation.
Hear Shannan tell the complete story: Watch Episode 1 of the Buy Back Your Life Podcast.
Learn more about the financing Shannan used: FHA loans explained. New to the process? Start with our homebuyer resources.
Credit requirements, interest rates, mortgage insurance, closing costs and loan terms vary by borrower, lender and property. Borrowing from a retirement account may have repayment, investment and tax consequences. This article is for educational purposes and is not financial, legal, tax or lending advice.
