By Ilyce Glink

As credit restrictions remain tight, lenders are requiring more cash to buy a home.

Sure, you can get an FHA loan with 3.5 percent, but if you want a conventional loan, you may have to put down at least 20 percent. That's a hefty nut, even if homes are priced 30 to 40 percent less than they were a few years ago.

But don't forget that you'll need extra cash to close (unless you're able to finance your closing costs), to prepay your homeowners insurance for the first year (if your lender requires it), and to ante in your share of property taxes.

And then there are the fees for moving expenses -- not to mention all the other things you'll need/want to buy as soon as you move into your new home.

How much should you save when buying a home? My short answer: As much as possible.

The costs of homeownership are steep: real estate taxes, maintenance, homeowner's and perhaps liability insurance and upkeep of your new home will be costly. These expenses have only one way to go and that's up. Municipalities need more money and will raise taxes. Maintenance fees only go up, as do insurance premiums (they sometimes go down but trend upward).

But you'll also need to replace light bulbs, broken fixtures, hot water heaters and air conditioner compressors, appliances and other items that break with use.

Unfortunately, new houses aren't immune to high homeownership costs as well. If you buy a new construction house from a lender that took it back from a bankrupt developer, there may not be anyone there to make the necessary repairs, adjustments and punch list items new homeowners generally find in the first 90 to 120 and even 365 days after closing.

Once you own your home, you'll be the one responsible for paying the contractor, plumber or landscape contractors. So, you better start saving.

Plan to spend at least $1,000 each year on maintaining your house. These funds may include having your heating and air conditioning units serviced, seal coating your driveway, snow removal or landscaping, painting or tuckpointing, pest removal or treatments, repairing leaks, and repairing or replacing appliances.

Hopefully, you won't have to do all of these things in the same year, but you should plan on having at least some of these expenses.

One way to help save money is to learn how to maintain a home yourself instead of hiring a local handyman (or woman) to help out.

Need to replace a faucet? There are several excellent videos on YouTube and other sites that will show you how to do it. Many manufacturers have downloadable directions on their Web sites with additional videos and tutorials.

You might be able to paint, change light bulbs and light fixtures, and make other minor repairs yourself, which will help save money.

You may not be perfect at doing these jobs yourself at first, but the nice thing about owning your own home is you can repaint the door until it's perfect -- or until you're perfectly satisfied with it.

Ilyce R. Glink's book is "100 Questions Every First-Time Home Buyer Should Ask: With Answers from Top Brokers from Around the Country" If you have questions for them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022 or contact them through Ilyce's Web site, www.thinkglink.com.)