Three things to consider
Most lenders require a down payment ranging from 3.5% to 5% of the sales price, depending on the loan type and terms. If you are able to provide at least 20% as a down payment, you may qualify for more favorable loan programs and interest rates while avoiding private mortgage insurance (PMI).
Lenders generally require that your monthly mortgage payment not exceed approximately 28% of your gross monthly income. Your mortgage payment typically includes the following components:
As a buyer, you are responsible for closing costs, which include fees for loan processing and other transaction-related expenses. These costs are typically paid in full at settlement, unless financed as part of your loan. On average, total closing costs range from 2% to 5% of the mortgage loan amount.