One of the most overlooked first time home buying tips is understanding how a down payment works. While some third-party programs exist that allow first timers a reduced down payment, more likely than not you will be expected to put down at least 5% of the total home cost at the time of purchase. Additionally, keep in mind that you might need some extra cash on hand for emergencies like broken appliances or busted pipes, so it’s a safer bet to put 20% down. If you are unclear on any of the terms, speak to your lender or mortgage specialist and ask them any questions you may have. Your finances are a big deal, and staying on top of them is one of the smartest ways to ensure a smooth transaction.