First Time Homebuyers - SiliconSage Mortgage

Credit Report

It is best to know your credit report and score before applying for a loan. Credit is one of the key factors that will help you obtain a mortgage loan successfully.

Down Payment

The down payment is the money that buyer deposits through escrow for the seller. Down payments are expressed as percentages. The rest of the payment will be collected at closing from your mortgage. Most mortgage options require a down payment. It is an insurance for lenders that if borrowers default on their payments, they will lose the down payments.

Mortgage Options

Conventional Loans
- A Conventional loan is a mortgage loan that is not insured or guaranteed by the federal government.
Federal Housing Administration Loans (FHA)
- FHA is mortgage loan that is insured by the federal government aim to make home buying more affordable for low to middle income family
Veterans Affairs Loans (VA)
- A VA loan is a mortgage loan guaranteed by the USA department of Veteran Affairs.

Mortgage Amortization Types

Fixed Mortgage
- Fixed mortgage loans are loan with fixed interest rates. The monthly mortgage payments will be fixed through the term of the loan.
Adjustable Rate Mortgage (ARM)
- ARM loans are loans with variable rates. The interest rate will be fixed for a certain period, then it will be adjusted every year depends on the market. However, the interest rate has cap meaning it cannot go over a certain rate through the term of the loan.

Mortgage Rates

Mortgage rates are interest rates offered to borrowers when they apply for a mortgage loan. The rates determine how the monthly mortgage payment will be. Low rates equal low monthly payment, vice versa higher rates equal higher payment.