Shopping for Your First Home

More Articles:

*Is there a right way to find the right house for me?
*What's the best way to get the best deal?
*How important is it to improve my credit score?
*Should I rent or buy?
*What's the difference between pre-qualifying and pre-approval?
*How much should I put down?

How much should I put down?

It may be tempting to blow every last dollar on your down payment, but it’s not such a great idea. Your lender certainly won't be very happy with you if you do. Be sure to have enough money left in the bank after you close to cover the myriad closing costs. Your mortgage lender or mortgage broker should be able to give you a sense of how much those closing costs will run long before you close, down to the penny. A down payment should be directly related to what you can afford. A down payment of 20 percent or more eliminates the need for mortgage insurance. However there are lending programs that allow for less than 20 percent you should check with your mortgage lender or mortgage broker on the availability of such programs.