Most lenders require a down payment of 3.5% - 5.0% of the sales price depending on the terms and loan type. If you want to avoid PMI (mortgage insurance) and are able to come up with at least 20% down, you may be eligible to take advantage of more favorable loan programs and rates.
Most lenders require that your monthly payment be less than ~28% of your gross monthly income. Your mortgage payment to the lender includes the following items:
As a buyer, you're required to pay fees for loan processing and other closing costs. These fees are paid in full at the final settlement, unless you're able to include them in your financing. Typically, you can expect to incur total closing costs of about 2-5% of your mortgage loan.