rom a lender's perspective, the more money you put down, the larger your stake in your home, and the less risk they have of losing money if they need to foreclose.

Even if a lender is insured against losses from foreclosures (as most lenders are) it still costs a lender money if you foreclose. It requires time and money to process a foreclosure and lenders with a lot of them pay higher insurance premiums.

It turns out that buyers who invest at least 20% are significantly less likely to default on a mortgage and walk away.

This makes sense, if you think about it:

• If you have enough for a 20% down payment, you have shown that you can save.
  
  
• With more of your own money invested in the house, you have a lot more to lose if you default.
  
  
• A bigger down payment reduces your monthly payments making them less of a burden on your budget.
  

Don't have 20%?
If you can't put 20% down (and most first time buyers can't) the lender wants you to get a third party to guarantee the loan.

There is a variety of commercial and government programs that will guarantee your loan. Find out more details here.