Foreclosure has been a big thing lately in the United States and if you’re one of the thousands that have been hit with this crisis, it’s often hard to think if you’ll ever own a home again.  The first thing you need to think about is that a foreclosure isn’t the end of the world.  Instead, we need to think on the bright side and treat it like a learning opportunity.  So many fail in life but does it stop them from living?  No.  Instead, they continue to get up and keep running until they succeed.  If you want to buy a home after a foreclosure, we’re going to have to think positive.

Start re-building your credit – I know this is going to sound like a slow and tedious process but this is honestly the best way to go.  Re-building your credit doesn’t take time at all.  In fact, you can have your credit score higher within a few years.  Get part-time jobs, attack the bills, and live off next to nothing, it’s not hard at all!  Once you get that credit built back up with no debt on your side, it’ll be much more easier to get a mortgage for your next house.

Get new credit – Even though you might have bad credit, it doesn’t hurt to apply for new credit.  A great way to apply for new credit is by applying for a secured credit card.  These type of cards will require a deposit, which will usually be your credit limit.  As I mentioned in the first point, if you can build your credit score, these type of credit cards are a great way to start.

Compare rates – Even after a foreclosure, you may still be able to apply for a mortgage.  Be careful though because some companies may try to rip you off and give you a very high loan rate.  Make sure that you shop around and check out at least five lenders when doing so, just to make sure you’re getting the best rate possible.  If you think the rates are too high, wait for a few months because as your credit score increases, your mortgage rate quotes will go down.

Go to someone you trust – When I say this, don’t go to some mom and pop shop online that will guarantee you a great mortgage rate.  Instead, go to a lender that is trusted and has name regonition.  Check with the better business bureau to see if the company is legit.  Many companies love to take advantage of those with less than perfect credit.  Don’t become one of those that fall into a trap. 

Buying a home after foreclosure won’t come right away.  Instead, you should take your time and build your credit up and rent for a while.  Learn from your mistakes and reflect on how you can change them.  As long as you’re patient, good things will come.