Stacy Laskowski

It is common for homeowners who’ve lost a home to foreclosure to feel a certain sense of defeat—and even a little fear—when it comes to trying to buy another home. Frankly, nobody wants to default on their mortgage and lose possession of their home even once, let alone think about going through it again.

But once the market conditions, personal circumstances or financial situation that led to a homeowner going through a foreclosure change, there is hope for buying another home. The bottom line is that buyers who’ve gone through a foreclosure should be prepared to do a little more work and show a little more proof that they are financially ready to own a home again.

Here are five things to expect when buying a home after a foreclosure:

1. There might be a waiting period.
If you’ve gone through a home foreclosure, the chances are good that you won’t be ready to turn around and buy a new home within months or even a year or so. The reality is that you likely wouldn’t be able to do so anyway. Lenders typically require buyers who’ve gone through foreclosure to wait anywhere from three to seven years before trying to purchase a new home. This waiting period gives buyers plenty of time to bounce back and improve whatever financial circumstances led to their foreclosure.

2. You’ll need to prove your financial situation has improved.
As buyers look to purchase a home after a foreclosure, they can use a waiting period to improve their financial situation. Like other home buyers, this is the time to work on paying down debts, saving money and improving your credit score. Because any lender will be aware of a previous foreclosure, buyers who want to purchase a home again might have to show several months of cash reserves on hand, whereas other home buyers might not be required to provide such stringent financial proof to qualify for a mortgage.

3. You should be able to explain any financial hardships.
Buyers who are trying to purchase a home after a foreclosure can expect to provide increased documentation. Foreclosures can happen to anyone, and lenders do understand that. But that doesn’t mean your lender won’t want to know about your personal experience when it comes to going through a foreclosure. Be prepared to explain whether it was a job loss, medical issue, market conditions or other circumstance that led to your foreclosure. It might be hard to talk about the situation, but it could help you qualify for buying another home.

4. You might need to shop around for the right lender.
This is advice given to every home buyer, but it is particularly true for buyers who have been through a foreclosure. If one lender won’t offer you a mortgage, shop around for another – and another if you need to. Every borrowing institution has varying requirements when it comes to loan approval. Don’t be discouraged if the first lender you seek out is not willing to offer you a loan.

5. You could face a higher interest rate and down payment.
When you are shopping around for the right lender after a foreclosure, you might notice that the terms offered differ from those offered for other buyers. You could be required to pay a higher interest rate or provide a larger down payment in order to purchase another home. This is another reason why a longer waiting period can help you better prepare for buying again. You’ll have more time to save money for any additional mortgage requirements you might face.

Spring is the time for many major home remodeling projects. From installing new flooring to upgrading your porch or patio to any other number of home upgrades, warmer weather seems to signal the perfect timing for making renovations.

We also know that spring is a prime time for selling a home. While many buyers love a few upgrades, it pays to choose carefully when it comes to your renovations. Why? The design choices you make might not align with every buyer’s taste, which could hurt your potential for selling in a competitive market.

Here are 10 trendy renovation choices to avoid if you’re planning to sell your home in the future:

1. Overdoing it in the kitchen. Yes, granite countertops are appealing to many buyers. However, high-end appliances might not increase your resale value as you would hope. Sure, they are great if you’re planning to use them for the long term, but they probably won’t give your home an edge over others on the market.

2. Being overly bold with your paint choices. Who doesn’t want to follow current trends when it comes to paint colors? But if you’re going bold in a lot of parts in your home, you could be creating more work for yourself when it comes time to sell. Loud paint colors can be covered up, but it can be a time-consuming and costly process.

3. Forgetting about your curb appeal. Don’t get so caught up in renovating the interior or exterior of your home that you forget about your lawn and landscaping. Remember, your curb appeal is one of the first things that buyers notice about your home. Give it proper attention when you’re making renovations too.

4. Leaving out lighting. Like finely pruned landscaping, great lighting can be an awesome selling point in a home. So, if you’re doing a major design overhaul in any room, don’t forget about upgrading your lighting. Whether it is a new fixture or adding energy-saving bulbs, good lighting can increase your home’s appeal when it comes time to sell.

5. Buying on impulse alone. Typically, there are many parts to a remodeling project. Think about a kitchen renovation. You might choose new flooring, cabinets, countertops, appliances, and hardware. Be sure to coordinate your choices so that you’re creating a fluid look throughout the project. Otherwise, your result could be disjointed and even unappealing to buyers.

6. Only focusing on appearance. Together with coordinating design choices is making sure that your stylistic upgrades are supported by structural renovations too. It is one thing for your home renovation to look good, but if it negatively affects your home’s structure, it could cost you far more money – and a potential home sale – in the future.

7. Skimping on good materials. During a home renovation, you want to get the most for your money. But that doesn’t mean you should buy cheap materials simply to achieve a certain look. While they might be appealing at first, lower quality materials probably won’t last, which could cost you more in the long run.

8. Choosing the cheapest contractor. Like good materials, a good contractor can make your home renovation project last. When you’re ready to renovate, be sure to choose a reputable contractor. Otherwise, you could be paying for repairs – or a total redo – when it comes time to sell.

9. Thinking you don’t need a permit. This is especially true if you’re completing your spring home renovation projects by yourself. Be sure to check local regulations before demo day. If you make renovations without a needed permit, you could be fined or even asked to tear down your work!

10. Being the biggest home in the neighborhood. Finally, remember that while your renovations are meant to add beauty and value to your home, they do not need to make it the showiest home in your neighborhood. In fact, if your home is the biggest or most expensive in your neighborhood, you might not recoup your investments when you go to sell.

The bottom line when it comes to your spring home renovations: be sensible if you’re planning to sell in the future.