Buying a home after a foreclosure is just a matter of careful planning and researching. While a foreclosure will stay on your credit record for seven years, you can qualify for a mortgage sooner than that. The following steps will give you a quick overview of how to buy a home after a foreclosure.

Step 1 Re-establish Credit

Once a foreclosure has been discharged, you can start reestablishing credit. The first year after a foreclosure is the most difficult to qualify for a home loan. With a score 550 or lower you will qualify for the highest rate loans, usually six points or higher than a conventional loan. Waiting a year can increase your score to the 600s and drop rates a point or two. Waiting another year can have you in good credit standing with loan rates only nominally higher.

While you are waiting to purchase a home, work toward improving your credit. Opening a credit card account or two is a good way to show you can handle payments. Saving for a down payment or cash reserves also improves your score.

Before you start loan shopping, check out your credit report to verify all the information is accurate. You dont want to pay higher rates for someone elses mistakes.

Step 2 Plan Your House Payment

Plan your house payment before you seek out a mortgage. You can use a mortgage calculator to figure your monthly payments on the different types of loans available. Adjustable rate mortgages come with the lowest rates, but fixed rate loans guarantee that your interest rates wont increase over the life of the loan.

Step 3 Shop For Financing

Shopping for financing to buy your house will make certain you get the best rates and fees. Request quotes from as many lenders as possible to find that special deal. Mortgage broker sites can help you compare multiple offers at once. They can also have special deals not available through individual lenders sites.

Step 4 Secure Your Mortgage

When you have found a good financing package, dont wait too long to apply. Rates change daily. Completing the application can lock in rates even if you havent completed the home purchase. Getting pre-approved can also give you several days or weeks to shop for a home at a guaranteed rate.