Check your credit
Your credit score affects your rate and the programs you qualify for. Pull your free credit reports and look for errors, like accounts you don't recognize or late payments that were on time. Disputing mistakes can take a while, so start early.
If your score is close to a pricing tier, paying down card balances can help. CapCenter loans need a credit score of at least 620, and higher scores can unlock better rates.
Set a payment you're comfortable with
Start with your monthly budget, not the top price you might be approved for. Your housing payment includes principal, interest, property taxes, homeowners insurance and any HOA dues or mortgage insurance. Decide what you can pay each month while still saving and covering your other goals.
Plan your cash
You'll need money for more than the down payment.
- Your down payment, which depends on the loan program
- Escrow deposits and prepaid interest at closing
- Your first year's homeowners insurance premium
- An inspection and moving costs
- A cushion for repairs after you move in
Get pre-approved
A pre-approval shows your real price range and tells sellers you're ready to buy. Many sellers expect one with an offer, and some ask for it before showings. With CapCenter, the online application takes about 15 minutes, uses a soft credit check that doesn't affect your score, and most clients get a pre-approval letter the same day.
To speed things up, unfreeze your credit at the three bureaus before you apply, and have your ID, pay stubs, W-2s and bank statements ready.
Choose a buyer's agent
A good agent knows the local market, sets up showings, helps you write a strong offer and guides you through inspection and closing. Interview a few if you can. You'll usually sign a written agreement with your agent before touring homes together.
Make your wish list
- Must-haves, like number of bedrooms or a commute limit
- Nice-to-haves you'd trade for the right price
- Deal-breakers, like a busy road or a major repair you won't take on
- Neighborhoods to explore, with schools, commute and amenities in mind
Avoid these before you buy
- Opening new credit cards or loans
- Making large purchases on credit, like a car or furniture
- Moving large sums of money without a paper trail
- Changing jobs without talking with your loan consultant first
