SM: How much money do you need to have saved up before you can buy a place?
Hiner: Well basically, you don’t have to put any money down. A lot of people go 100% financing—take out a mortgage for the full amount of the home’s purchase price. You DO need some money though, for closing costs. If you’ve got about $6,000—which should give you money for closing costs, as well as a little money in the bank (which lenders like to see)—you’ve got enough to buy a house.

SM: There are so many different types of mortgages out there; it can make your head spin. What type of mortgage should a first-time buyer look for?
Hiner: If you know that this is a “starter house” that you’re only planning on living in for three to five years, at which time you’ll sell and buy a bigger home, then a five-year fixed mortgage (meaning, the interest rate is locked-in for five years) is a good plan for you. If you’re planning on staying in the house for a long time and having to refinance a loan every few years makes you nervous, go for a 30-year fixed mortgage (meaning, you lock in the interest rate for all 30 years that you have to pay back the loan).