There are several things you need to think about beforeyou apply for your loan!

Example How much money will I have to come up with to buy a home
Answer Well, that depends on a number of factors, including the cost of thehouse and the type of mortgage you get. In general, you need to come up withenough money to cover three costs earnest money - the deposit you make on thehome when you submit your offer, to prove to the seller that you are seriousabout wanting to buy the house; the down payment, a percentage of the cost ofthe home that you must pay when you go to settlement; and closing costs, thecosts associated with processing the paperwork to buy a house.

When you make an offer on a home, your real estate agent will put yourearnest money into an escrow account. If the offer is accepted, your earnestmoney will be applied to the down payment or closing costs. If your offer isnot accepted, your money will be returned to you. The amount of your earnestmoney varies. If you buy a HUD home, for example, your deposit generally willrange from $500 - $2,000.

The more money you can put into your down payment, the lower your mortgagepayments will be. Some types of loans require 10-20% of the purchase price.That's why many first-time homebuyers turn to HUD's FHA for help. FHA loansrequire only 3.5% down - and sometimes less.