Buying a house may not be simple as it seems. There are a number of criteria to meet, and any little thing can hurt your progress. It can be hard when you hear the words, "mortgage denied" but there is hope! If you were denied a mortgage loan, the first thing you need to do is find out why. A no from a bank could mean you brought the wrong documents or that you only need to do 1 or 2 things to get to a yes. There could also be a number of more serious items that are standing in the way of homeownership and need to be addressed as part of your Buying Plan, including:
- Stability of Income
- Need to Establish Credit
- Delinquent Accounts
- Large Monthly Payments on Existing Loans
If you are in Milwaukee and have gone through this disappointment, there is a great alternative that can assist you in getting into a home of your own. One of the first priorities should be creating your Buying Plan. Once you understand all of the reasons why you were denied the mortgage, getting started on creating and implementing your Buying Plan is your top priority. You may also want to take some time and research all the different paths to ownership and select the one that would best help achieve your goals. Here are a few options to consider:
- Buy and repair a home with cash
- Rent, work to qualify for mortgage in the future, and buy your home then
For families with limited cash and abilities to do home repair themselves, the cash option can be difficult. Even if you have enough cash to buy a lower priced home, you'll need to consider all the costs to repair the home and make it livable while you pay monthly expenses for both your current residence and your new property. Still, this option can make a lot of sense if you can gather all the resources and are handy.
For families that are living in unsafe, temporary, or expensive rental housing, renting and doing the work to qualify for homeownership over time may not be the best approach. You have to move now, and want it to be safe, secure, and stable for your family without having to move from place to place. It also pushes out the dream of homeownership to the future. Still, this option can make a lot of sense for those that like their current rental and are dedicated to the process of repairing credit, improving personal finances, and buying a home when they have everything in order for the bank.
In Milwaukee, Strong Blocks offers a 21-month rent-to-own program that helps those individuals who were denied a mortgage loan by helping them complete a Buying Plan and achieve home ownership, all while they rent the home they are working to purchase. The homes are remodeled already and the up-front costs are more accessible than the cash needed to purchase and rehab a home. It can be a great alternative to giving up the dream of home ownership.
How does it work?
First, Strong Blocks introduces experts to you so that you can form your homeownership team. These experts include Financial Counselors, Realtors, and Bank Partners that help you along the way. You’ll have a financial coach that walks you through every shortcoming, assesses your finances and credit, and assits you to improve your credit and save for this big investment. By working together we can help you find a remodeled home in our program, rent it for up to 21 months, and position yourself to purchase.
At Strong Blocks, we help you finalize your Buying Plan so that it will be beneficial for you, your family, your future, and the banks that are considering you for a loan. It’s easy to become discouraged. Don’t give up hope because you’ve been turned away. NO is just another way of saying, “Next Opportunity”. Let one of Strong Blocks remodeled rent-to-own homes in Milwaukee be your next opportunity today.
Written by Mary Leach-Sumlin, Any House Realty
Mary Leach-Sumlin is the owner/Broker of Any House Realty, which she founded in 2017. Prior to launching her own real estate firm, Mary was a Realtor for ACTS Housing since 2007, and then the Managing Broker. She has an office located inside St. Martin de Porres Parish on 2nd and Burleigh. She holds the Accredited Buyer's Representative designation. She has helped more than 200 families achieve their homeownership dreams. You can email her at firstname.lastname@example.org