Tip # 1 - Is Home Ownership For You? - Before you begin your quest to own a home again, you need to determine whether or not home ownership is for you. Owning a home is a major responsibility that some people may not be equipped for or prepared to handle. Many people prefer not to have to deal with the responsibilities involved with owning a home and would much rather rent. If a roof needs replacing or the basement floods, many people would rather the landlord take care of the problem instead of shelling out the cash themselves to have the problems fixed. Simply creating a list of the pros and cons of homeownership can assist you in making the determination if buying another home would be a wise decision.

Tip # 2 - Get Your Finances in Order - Your previous home was foreclosed on for a reason. Obviously you were having some serious financial problems that prevented you from keeping up with your mortgage payments. Prior to applying for a new mortgage, it would probably be best for you to pay off all of your debts first. This is a good idea, not only to decrease your chances of losing another home, but also in order to ensure that you'll receive the lowest interest rate possible. Also, before looking for the perfect home, you should figure out exactly how much of a payment you can comfortably afford each month, including taxes and insurance. If the inability to pay your property taxes contributed to the loss of your first home, there is a surefire way to ensure that it doesn't happen again. Many mortgage companies will include taxes and property insurance in with your mortgage payments. If the option isn't presented to you prior to closing, be sure and ask your mortgage broker or loan officer. Simply explain that you would rather have a higher monthly payment than be required to pay a large lump some on an annual basis.

Tip # 3 - Save Up For a Down Payment - Even though there are numerous no-money-down programs out there to help people without down payments to become homeowners, it's always a good idea to save up 5 % at the absolute minimum, in addition to funds to cover closing costs. A great deal of sellers will pay all or some of the closing costs, but oftentimes there are surprise costs that may arise at the last minute. Having an adequate down payment also makes you more likely to be approved for a loan. Having a past foreclosure under your belt, as well as no money for a down payment makes you a higher risk to banks that they may not be willing to take.

Tip # 4 - Keep Your Options Open - There are many questionable mortgage companies opening all over the country that will approve anyone with an income. Don't go with the first mortgage company that says they can get you approved. Many of these companies are only out for the money and they could care less about you personally. Many will take advantage of your eagerness to own a home despite past credit problems and will charge a great deal more fees than necessary. With all of the special financing programs available, you don't have to deal with this type of treatment. Stick with reputable mortgage companies, since most of them also offer special financing programs for those in your specific credit situation. There is also the option of buying a home on a land contract or one of the popular lease-to-own programs. Buying a home using one of these methods would give you at least two or three years to improve your credit situation enough to get approved for a mortgage.

With all of the many options available when buying a home these days, there is no need for a past foreclosure to prevent you from buying a home again. You just have to ensure that you're prepared to handle the great responsibility of being a homeowner. There are taxes, insurance, lawn maintenance and repairs, just to name a few. If the idea of all of these responsibilities makes you cringe, then perhaps you should rent for a while until you feel more prepared to handle the responsibilities involved in homeownership. If you don't mind the fact that these things are all part of owning a home, then you can and will own a home again. You simply need to be persistent, resourceful and plan ahead, and you will be approved for your dream home--again--no matter if it is through a conventional mortgage, rent/lease-to-own program or a land contract.