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Saving up for a down payment is perhaps the biggest hurdle to buying a home for many Americans, but how much money do you really need to put down in order to secure a deal?

By definition, a down payment is the amount of money a buyer spends up front to purchase a house. A buyer typically takes out a mortgage to pay the rest of the sale price before closing, and the size of a down payment can have a significant impact on which type of loan a lender is willing to offer.

A down payment is calculated as a percentage of a homes total purchase price. For example, if youre buying a $300,000 house, $15,000 would be a 5 percent down payment, whereas $60,000 would be 20 percent.

Conventional wisdom says homebuyers need to put down at least 20 percent to qualify for a mortgage, but putting that much down is no longer the norm. While 20 percent is a great goal with several benefits, many prospective buyers cant afford to pay such a large lump sum. If youre in the market for a home, consider the following to determine how much you should put down:

The Upsides of 20 Percent
Maybe youve saved up a lot over the years to buy your first home, or maybe youre a homeowner who can dedicate a major chunk of proceeds from a home sale toward your new down payment. Either way, youre in a great position.

Although you dont have to put 20 percent down to get a mortgage, a lender would consider you more financially stable and less risky if you did. Therefore, a lender wouldnt require you to pay private mortgage insurance and would likely offer you a lower interest rate”two big perks that could mean smaller monthly payments and save you thousands of dollars over your loan period.

Mortgage lenders arent the only ones who feel more confident in a buyer who can put down at least 20 percent. If a seller gets multiple offers on what might be your dream home, youre more likely to stand out among the competition if you bring a larger down payment to the negotiating table.

Going Below 20
If you cant make a 20 percent down payment, dont worry. Youre not alone. In fact, studies suggest the majority of buyers put less than 20 percent down on a new house, with some even paying below five percent. First-timers and buyers 35 and younger usually put down the least, as they tend to have lower incomes than older buyers.

Nonetheless, youll seem like a riskier borrower to lenders by putting down less than 20 percent. That means a lender will likely require you to buy mortgage insurance to protect the companys investment, and your loans interest rate is bound to be higher.

Although most private lenders welcome buyers who have small down payments, some government agencies also offer programs aimed at helping low- to moderate-income families buy homes. For example, a Federal Housing Administration-backed loan could accept a down payment of 3.5 percent, and the U.S. Department of Veterans Affairs offers loans with no money down. However, because such federal programs have strict eligibility requirements and may be subject to policy changes, consult a professional for further details.

Do Whats Best
The words down payment neednt scare you away from buying a home. When deciding how much to put down, consider your financial situation, loan options and goals. Like choosing a home you love, its important to choose a down payment thats right for you.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

If your credit score is low, it could be due to errors on your report. This is very common, and it can significantly lower your score and make it difficult or impossible to be approved for a credit card, car loan or mortgage.

If your credit report contains inaccurate information, take the necessary steps to dispute it and have the mistakes corrected. A credit repair company may be helpful in some cases, but it might not be necessary.

What a Credit Repair Company Can and Cant Do

A credit repair company can help you dispute inaccurate information. You can do that on your own as well, but if your report contains several errors, or if you have been a victim of identity theft and criminals have opened several fraudulent accounts in your name, it might be too complicated and time-consuming to dispute all of the errors yourself. A credit repair company can write to the credit bureaus on your behalf to dispute the errors and provide the documentation that is needed to correct them.

In most cases, a credit bureau is required to investigate a dispute within 30 days of receiving the information. That can help you correct mistakes and repair your credit score quickly so you dont have to put your financial goals on hold.

A credit repair company cannot remove negative information from your credit report if the information is accurate. Bankruptcies, liens and accounts in collection will stay on your credit report for several years, and there is nothing you or a credit repair company can do about it.

How to Find a Reputable Company

There are many legitimate credit repair companies that follow the law and respect consumers rights, but there are also a good number of scams. If a company promises to raise your credit score by a specific number of points, dont believe it. If a company tells you to dispute correct information, dont do it. It’s also illegal for a credit repair company to charge you before they complete any work on your behalf.

A reputable company should explain your rights and be clear about what they can and cant do to help you. They should listen to why you want to dispute information and request documentation to support your position. They should not promise you instant results.

Published with permission from RISMedia.

Buying a house is complicated. First-time buyers can make costly mistakes. Here are things to avoid

Not Knowing What You Can Afford

Use a mortgage affordability calculator to avoid wasting time looking at listings that are too expensive.

Not Comparing Rates

By applying to several lenders, you could secure a loan with much more favorable terms.

Not Checking Your Credit Report

Check your credit and, if you find any errors, contact the credit bureau to have them corrected before you apply for a mortgage.

Choosing the Wrong Down Payment

A low down payment makes homeownership more attainable, but you may get charged higher interest.

Not Considering Other Costs

Be sure to factor in property taxes, insurance, maintenance, repairs and utilities into your budget.

Published with permission from RISMedia.

Homes cost a lot of money to maintain. But are you spending extra money unnecessarily on upkeep? Here are seven of the most expensive mistakes you could be making in your home:

1. Using Traditional Light Bulbs.If you still have incandescent light bulbs in your home, you could be throwing a lot of money away every month on inflated electric bills. Over its life span, an incandescent bulb can use almost $200 worth of electricity. A CFL will only use about $40 worth of electricity over the same time period. Even better is the LED bulb, which only uses around $30 per bulb. Think what replacing every light bulb in your home could do to your home’s bottom line!

2. Letting Faucets Leak.A leaky faucet that drips one drop per second can waste more than 3,000 gallons per year, which is enough water to take more than 180 showers. Some people live in areas where water is plentiful, but for others in areas plagued with drought, this could be costing a fortune. Fix or replace your leaky faucet, and save a ton on your water bill.

3. Using the Wrong Air Filter Size.We all sometimes forget to change out the air filters for our HVAC systems or accidentally buy the wrong size. But using the wrong filter or a dirty one can increase your power bill and cause expensive problems for your furnace down the road. Use the correct filters for your system, and set a reminder to change them after the recommended amount of time. You won’t regret it.

4. Not Customizing the Temperature.Invest in a customizable thermostat. If you’re away at the office all day, you can program your heater to shift down a few degrees while you’re gone and then shift back up shortly before you return home. Heating or cooling an empty home wastes a lot of money in energy costs.

5. Not Adjusting Air Vents Properly.Is one room in your home hot, while the others are cold? Oftentimes homeowners will crank up the air conditioning in the whole house to combat hot temperatures in one area. Instead, adjust air vents to direct the flow of air more evenly throughout your entire home. Professionals will come regulate this to ensure your entire home is receiving the same amount of air conditioning or heating.

6. Overwatering the Lawn.Many homeowners have their sprinkler systems programmed to come on in the early morning hours for optimum lawn health. This can become a problem, however, if you’re never around to see what you’re actually watering. A broken sprinkler head could be causing a fountain, or the trajectory of your sprinkler may be directed at a fence instead of your lawn. Periodically run your sprinklers during the day so you can see how theyre performing when you’re not around.

7. Ignoring Leaky Windows and Doors.Leaky windows and doors are great places for cold winds or hot air to enter your home. Many homeowners simply ignore them and crank up their heaters or AC. Caulk leaky windows and put rubber seal around doors to maintain your indoor climate.

Use these tips to cut maintenance costs on your home today.

Published with permission from RISMedia.

Published with permission from RISMedia.