Down Payment
The lender is going to require that you come up with some form of down payment, usually 5% of the value of the home. The amount that you put down effects the lender's decision, the size of your monthly mortgage payments and the amount of cash you have available for other home buying cost. The larger the down payment you put down , the lower your monthly payment will be, as well as the amount of the total loan. Lenders will not require you to have mortgage insurance if you are able to put down 20%. This can be a substantial amount of savings toward your monthly payment.
Sources you may draw upon to come up with the down payment include savings, life insurance policies, mutual funds, stocks and bonds, pension funds,real estate holdings to name a few. Other ways to accumulate the money for a down payment are, listed below.

Gift from a family member - Notarized documentation is required to prove that the money is a gift, not a loan and must be signed by the giver.

Withdraw money from your IRA account - You may withdraw up to $10,000 without penalty, if used toward buying your first home.

Borrow against your 401K plan - Some 401K plans allow a withdrawal when you use the money to purchase a home.Check with your plan administrator.

Sell or borrow against an asset - The loan payment will be counted as a debt.

Use premium pricing to pay closing cost and/or prepaids - This will reduce the amount needed for closing , however, the interest rate will be a little higher.

Have the seller pay some of the closing cost and /or prepaids - This will reduce the amount needed for closing without raising the interest rate.

Down payment assistance programs - Ask your Loan Officer if there are any down payment assistance available in your area.

Buyer's Guide
A step by step guide of
what is involved in buying a home.

Buyer's Criteria
Why Should I Use an Agent?
Buyer Cost Breakdown
Items Needed at Loan Application
Loan Application
Increase Your Purchasing Power
Obtaining the Down Payment
What to Avoid
Types of Loans
Mortgage Glossary of Terms
Services I Will Provide

Moving Guide
Packing Tips