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It used to be that you didn't need much cash for a down payment thanks to all the mortgage products that were once available. But, now, you'll need at least a 5% to 10% down payment. And, that's assuming that you're a prime borrower with a credit score of at least 720, documentation for your income and assets, and monthly debt that doesn't surpass 42% of your monthly gross income. You'll need a bigger down payment if you have a lower score and if you're missing any of the other requirements. Click here for how your borrower status impacts your down payment.

Remember that puny down payments come at a price. First of all, you start with very little equity in your home. Also, if you don't have 20% to put down, you'll probably have to ante up for mortgage insurance (which protects the bank against default and can top $1,000 a year if you put 5% down on a $200,000 loan).

6. "Just what are points, anyway?"
Lenders and homebuyers are constantly referring to "points" when talking about mortgages. This is a fancy term for the considerable fees you pay when you take out a loan. One point is equal to 1% of your loan amount. So, if you need a $150,000 mortgage and you have to pay one point in fees, that charge equals $1,500. Lenders refer to points variously as loan-origination fees, discount fees or buy-down fees.

Like the interest you'll pay each month, points are essentially finance charges — only you pay them upfront. Lenders blend them with interest rates to come up with the characteristics of the loan. For example, the more points you pay upfront, the lower the interest rate the bank will charge you over the course of the loan. Also, like interest, points are 100% tax deductible in the year you pay them.

There is a science to figuring out how many points you should pay under what circumstances. Sometimes you can opt out of paying points altogether, taking higher monthly payments instead. To figure out what makes sense for you, check out this “Points or no points?” worksheet.

7. "How long after I apply will I get the money?"
Assuming you've been preapproved for a mortgage, these days it can take anywhere from five to 10 business days to get a loan commitment from the bank, depending on how complicated your application is or how flooded your lender is at the time you apply.

Once the lender says it will give you the money, you'll probably still have some hoops to jump through. Most commitment letters come with certain conditions that you'll have to meet, like providing more financial information or submitting to a final inspection of your property.

You won't actually get your hands on the money until you close the deal, usually a week after you get final approval from the bank. Don't dawdle. Loan commitments expire about 45 days after you receive them, and the rates and terms you agreed to may have to be renegotiated with the bank. All in all, you should count on it taking four to six weeks from the time you apply until the home is yours.

8. "How do I know the house won't fall apart?"
You won't know for sure until you move in, but the best way to protect yourself is to hire an experienced home inspector to check the house's structure and systems, including the roof, heating, plumbing, electrical and air-conditioning systems.

The cost of a home inspection ranges between $250 and $500. If you can, have the home inspected after you agree on a price, but before you sign the contract and put down a deposit. If you are in a rush to go to contract to lock in the deal, make sure your contract states that the terms of the purchase are conditioned on the approval of a professional home inspector.

Just because you need to hire a pro, doesn't mean you can't do some checking around yourself before you make an offer. Check for soft spots in the flooring and look for freshly painted patches on the ceiling or walls that could be hiding water damage. Turn electric switches and water faucets on and off. If it's summer, turn off the air conditioning and turn on the heat to make sure it works. Likewise, if it's winter, test out the air conditioning. Tour the basement looking for water on the floor, and see if the hot water heater looks rusted or cracked. A little diligence before you start negotiations could save you a lot of time, effort and disappointment.

9. "I've got a deal with the seller. Now what?"
Now it's time for your attorney to order title searches and other final documents required by the bank and to schedule the closing — the time and place where cash and ownership of the property changes hands.

The closing can take an hour or two and requires the presence of eight to 10 people — you, your attorney, the seller, his attorney, the bank, its attorney, and the broker. You'll spend the bulk of the time signing documents and endorsing certified checks.

This is where you can expect to shell out the bulk of the cash. Along with the rest of the down payment, you'll have to cover an assortment of fees known collectively as "closing costs." Lenders are required under federal law to give you a "good-faith estimate" of all these charges and you should come ready to pay with a certified check. If your bank requires mortgage insurance (which is likely if you aren't putting at least 20% down) you'll also need to pay the first premium. Ditto for homeowners insurance.

Be sure to inspect the home right before you actually close the deal. Make sure that it is in good condition and that any property, such as light fixtures or built-in bookcases, that you were told you would get with the house are still there. All the appliances should work, and the house should be broom clean. After the closing is over, have the locks changed and the home is yours.

10. "Where do the tax benefits come in?"
You've heard again and again how buying a home is the best tax break around. Maybe you've even been called a chump for renting. After all, paying $1,200 a month for your mortgage is really the equivalent of paying $900 a month in rent. But how does that work exactly?

Here's the deal: Mortgage interest (including points) and real-estate taxes are tax deductible. That doesn't sound very sexy, but it adds up. Since most of what you pay for your mortgage in the first years is interest, on a $1,200 mortgage payment you get to deduct about $1,080 a month. That reduces your taxable income by about $13,000 a year. If you're in the 25% tax bracket, that deduction is worth $270 a month.

To see the benefit, you can either wait for a big payout after you file your income-tax return, or adjust what is withheld from your paycheck each month. Claim additional allowances on your W-4 form and your paycheck will jump immediately. You'll have to do the worksheet on the back of the W-4 form to figure out how many additional allowances you can claim. But using the above example, you could take two or three more.