A down payment between 10 and 20% on your first home is more important today than ever before. Due to the financial and mortgage meltdown, lenders are more cautious with mortgage applications the 100% financing loans are hard to come by.

Of course that being said, in this difficult economy it is not easy to save the $20,000 or more that is needed, especially if you are shopping for your first home and you are just starting out. However, I have some tips that can help you save for that down payment and to get to your goal. An important rule of thumb to keep in mind when you're deciding how large a down payment you can afford, it is important to leave yourself some padding. The home-buying process, moving as well as the first months of home ownership can be expensive and there may be many unexpected expenses.

Open A Special Account. Start a special savings account that is strictly for the down payment. This will help you to keep your daily expenses as well as any other savings accounts separate. If you open this account at the same bank that your checking account is held, it might make it easier for you to transfer funds on a regular basis, helping your balance to grow!

Reevaluate Your Expenses. Saving such a large amount is not easy so you will have to have for look at your budget and consider sacrificing other things. Saving in an economy like this is difficult but it can be done. If you are able to  cut major monthly expenses like credit card debt payments or vacations, you can get to your goal faster. 

Look to your 401K. While touching your 401k is not for everyone, you do have this as an option. Most plans will allow you to pull funds out for a limited amount of time to use them toward a home purchase. Most will require that you repay these funds within a certain time frame. If you have enough in your retirement savings this might be an option you can explore.

Once you have an idea of how much you need to save for your down payment, it is a good idea to explore your options with your lender to see which loan programs fit your situation. There may be some programs available to help you if coming up with a down payment is the only thing standing in the way of your home loan. Saving such a large amount will be difficult but watching your money add up can help you stay motivated and reach your savings goal. Just keep reminding yourself that with each dollar saved you will be much closer to home ownership!