Amber Richard

It really depends, of course the more you can do the better. The sellers are getting multiple offers on homes so they are looking for the strongest offers. Generally, people are offering 3-5% above asking price and trying to put down a hefty down payment will put them above other offers. Generally, a down payment for a home is between 3.5% and 20% of the total cost of the home. The amount of the required down payment depends on your credit history, income, the cost of the home, and the type of mortgage you choose. Many first-time homebuyers put down between 3.5 to 5% of the cost of the home. Keep in mind, when you apply for a home loan, in addition to your down payment, you should have at least three months worth of mortgage payments saved, or what lenders call cash reserves. Another thing to keep in mind is closing costs. Closing, or settlement, costs are fees you pay when you actually get your loan from your financial institution. These include costs will include your points, taxes, title insurance, financing costs, items that must be prepaid or escrowed, and other settlement costs. Closing costs generally range between 2 to 7% of the property value. You'll receive an estimate from your lender after you apply for a mortgage. - Tue Dec 1 2009, 11:36