Nowadays, foreclosures do not seem to be a big deal anymore. Since the crashing of the housing market in the past it seemed like a usual thing, unlike ages ago when people really put stigma on homeowners whose homes were lost in foreclosures.

But losing one's home in foreclosure is still one of the worst things that could happen to a homeowner. You have invested your hard-earned money in it and have poured blood and sweat to get your dream house. But foreclosure is not the end of the world, there is still hope to get a new dream house again.

It won't be too long before you qualify for a home mortgage again. The soonest you start rebuilding your credit the better. But all of it will also depend on the foreclosure waiting period and the type of loan you are ready to obtain.

If you lost your previous home due to foreclosure, it would usually takes seven years before you can apply for another home mortgage as required by Fannie Mae. It is also the same length of time recorded on your foreclosure report.

On the other hand, a waiting period of three years is required to be eligible for a new home mortgage if the foreclosure was because of documented extenuating circumstances. It could be the cause of the increase in your financial obligations or a significant reduction of income. You only need to submit documents like divorce decree, job severance paper or hospital bills that supports your claim.

To be successful in applying for a new home mortgage and the length of the waiting period would depend also on how you'll be able to rebuild your credit after foreclosure. It may seem hard but there are ways you can improve your credit score.

If you are renting at present, it would be good to find a place that is very affordable that will help you save money on for the down payment. Another good idea is to secure a credit card where the credit limit amount are tied to deposit made to the card's issuer.

A steady job for two years or more would be an indication that you are a responsible person and this is one of the things that a lender would look into. Also, it means that you have a steady source of income and you could afford to pay for the mortgage.

Keeping a steady job and staying in it for as long as you can could really help. Lenders will look into your employment before they grant you a loan.

As you prepare yourself to tread the path of owning a home again, keep an open mind and shop for lenders terms and conditions. Usually, they would require borrowers to make large down payments and charge high interest rates. It would help if you try to lower your expectations and try applying a mortgage for a smaller and affordable house that would increase the chances of approval and of course you'll pay a lesser mortgage.