There are many types of mortgages available to suit many types of different financial situations. But there are just a few that are used commonly: the conventional mortgage, the FHA mortgage, and the DVA mortgage. Each has its pros and cons.
How much should you put down? That really depends on how much you can afford. Putting more down means that the monthly payment will be lower. The most common down payment range I see on a regular basis is between 3% down and 20% down, with more coming in between 3% and 10%.
Another consideration is that if you put down 20%, the mortgage company won't have a Private Mortgage Insurance requirement. This can save a bunch of money on a month-to-month basis. An alternative is once you reach 20% equity in your home, you can usually request the mortgage company to remove the PMI requirement.
Here’s a word about closing costs. Each mortgage has some sort of closing costs associated with getting the mortgage. These closing costs usually run about 3% of the loan.
In today’s market, it is very common for a buyer to ask a seller to pay the buyer’s closing costs. It is usually not an issue for the seller as their bottom line is not affected by paying buyer’s closing costs. The only drawback is that the house needs to appraise at the higher value (sale price plus closing costs), but even that is almost never an issue either.