No, you are not required to get pre-approved, but we recommend that you do so if you are getting serious about buying a home. This will:
CapCenter will be happy to provide a free, no obligation Pre-Approval Letter to you. It’s easy and fast -- simply complete our electronic application and we will contact you shortly. Your Loan Consultant will then provide a Preapproval Letter and Clarity Statement which document the loan amount for which you are approved and the costs associated with the loan transaction.
Your CapCenter Managing Agent will simplify and share information about the mortgage-related terminology, loan options, and all the numbers on the pre-approval. We will make sure you have a firm understanding of your debt to income ratio, estimated monthly mortgage payments, cash to close, escrows, pre-paids, closing costs, and if applicable, mortgage insurance.
We hear “I’m in the early stages, it may be a few months,” as often as we hear “I didn’t expect to find a house so quickly!”. So, yes, we think that once you’ve committed to the idea of buying a house, it’s important to go through the preapproval process so that you can understand the financing side of the equation. The lender might even identify ways to improve your position vis a vis loan approval such as down payment requirements or issues on your credit report that should be addressed.
You are under no obligation to proceed with the lender who provides the pre-approval letter, and the letter can quickly be updated as you move forward.
Unless you have asked to be pre-approved for a certain amount, the lender will pre-approve you for the maximum loan amount for which you qualify based on your Debt to Income (DTI) ratio. This amount plus your available down payment equals the purchase price for which you qualify. At CapCenter, your MA will use your pre-approval letter to establish a range of values for shopping purposes. When you make an offer we’ll make sure your preapproval letter reflects the price you are offering.
When you submit a pre-approval or loan application to any lender, they will order your credit report (“credit inquiry”). In turn, this can cause concern that each credit “inquiry” will have a negative impact on your credit score, but don’t worry, most credit bureaus use a Fair Isaac Company (FICO) Scores model to calculate credit scores. According to Fair Isaac’s website (myfico.com), FICO Scores ignore loan inquiries made in the 30 days prior to scoring. So, if you move forward with a loan within 30 days, the inquiries won’t affect your scores while you are shopping.
In addition, FICO Scores look on your credit report for inquiries older than 30 days. If FICO Scores find some, the scoring model will consider inquiries that fall into a typical shopping period as just one inquiry. FICO’s newer scoring models consider 45 days the “typical shopping period.” Older versions define it as any 14 day span. For more information, visit: http://www.myfico.com/CreditEducation/CreditChecks/Inquiries.aspx
According to myfico.com, people with high scores consistently exhibit this behavior:
It is not absolutely necessary, but since another inquiry is unlikely to hurt your credit score, we do recommend it. (see FAQ). Because CapCenter offers Zero Closing Cost loans, your CapCenter pre-approval might reflect a different loan amount or loan terms. Also, getting pre-approved now will enable us to more quickly update the pre-approval letter when it comes time to make an offer.
Your home will probably be the most expensive purchase you will ever make and embarking on this process without being represented by a licensed, knowledgeable real estate professional is risky. The process is complicated and you need someone on your side who is looking out for you, and only you.
Contact the CapCenter realty team! We’re available 7 days a week and are happy to make arrangements for you to tour any area home. Having your MA make these arrangements will ensure that CapCenter is considered the “procuring cause” agent if you decide to purchase the home. In turn, this will ensure that you will receive a refund of a portion of the buy side commission that CapCenter receives from the seller. If you decide to make arrangements directly with the listing agent or to attend an open house, be sure to mention that you are working with a buyer’s agent.
Yes, in most cases, you may still hire CapCenter to represent you. Give us a call and we’d be happy to discuss this with you.
Have you signed an agency agreement? If so, you should review the terms of the agreement to understand your options. If you haven’t signed an agreement, you can engage us. If another agent has shown you some houses but you haven’t signed an Agency Agreement, give us a call so we can discuss your situation further.
When you engage CapCenter, you get our entire team. If you want to switch to a different MA at any time, we will honor your request.
Yes, CapCenter offers all traditional realty services and then some. We try to provide relevants tools for the independent shopper, but we’re also there for clients who want more guidance/assistance. We tailor our approach to the type of experience you want.
Our Managing Agents are CapCenter employees rather than independent contractors, and their compensation is based directly on your level of satisfaction. We believe this is the best way to ensure that they will be there for you every step of the way. Regardless of the size or time frame of the transaction, CapCenter Managing Agents value each client equally and will provide ethical, responsive representation every step of the way.
If you are ready to make an offer, there’s no time to waste! Give us a call so that we can facilitate the preapproval process and discuss an offer for purchase. The first step in getting pre-approved is to complete an electronic pre-approval application on capcenter.com.
The listing agent represents the seller only, and their primary concern is selling the house. We strongly recommend that you engage a buyer’s agent to represent your interests. The process is complicated and you need someone on your side who is looking out for you, and only you.
A seasoned, professional agent has been through the process many times. They have information and expertise that a typical home buyer does not have:
Keep in mind that the seller pays the buyer’s agent’s commission, so there’s no cost to you. And, if you use CapCenter, we will actually refund a portion of our commission to you as a Realty Refund.
Yes, if an inspection identifies defects that will require some sort of repair, don’t be hesitant to ask for seller concessions to cover the cost of the repairs. If CapCenter’s coverage of closing costs plus the Realty Refunds exceed the transaction costs, prepaids and escrow deposits, you can use the remainder to buy a lower interest rate or to renegotiate the sales price.
There’s no easy answer to whether a homeowner should sell or rent their current home. Are you ready to put up with the hassles of being a landlord? Do the economics work? Are you underwater on your current loan? These are just a few of the considerations that your MA will be happy to discuss with you.
The choice is yours, but CapCenter encourages you to get a general home inspection prior to listing your home. This will identify any repairs that should be made before the house is listed. Also, please note that any serious defects identified by the home inspection process might need to be disclosed to a potential buyer.
Keep in mind that the buyer is likely to request an inspection in the Purchase Agreement, so getting the inspection early will reduce the probability of unpleasant surprises later in the process that could disrail a deal or disrupt your timetable for closing.
At a minimum we recommend a general home inspection. Your MA will help you decide if any other inspections should be completed based on the age, condition and construction of your home.
Absolutely. It’s a little confusing to do an “apples to apples” comparison of loan quotes, but we will carefully review all offers with you so that you have a thorough understanding of the mortgage-related terminology and the numbers.
CapCenter is one company, and our mortgage and realty professionals work together as one team.
CapCenter’s Zero Closing Cost offer means that we offer to waive or pay traditional closing costs charged by other lenders. There is no catch! We cover the closing costs without inflating our interest rates or adding the costs to the loan amount. And, when your use our realty team, the Realty Refund will cover, at a minimum, the government recording fees and recordation taxes associated with the transaction.
There are a few transaction costs that are not loan-related, i.e., they’re paid in a cash purchase as well:
Until you find a specific property, the above costs will only be estimates. Ultimately, the actual dollar amounts will be the same regardless of lender, but they do need to be considered when calculating the Cash to Close the transaction. Your CapCenter Realty Refund will offset some of these transaction costs.
Not necessarily. We commonly see other lenders try to compete with us by offering a lower rate but with high closing costs (e.g., origination points or fees, discount points and other lender fees). To conduct an “apples to apples” comparison, you should look at our lower rates with the discount points and compare to the rate and total costs charged by our competitor.
CapCenter tries to offer the best deal to all of our clients regardless of loan type or amount. If you think you have found a better deal, bring it to your MA immediately so that we can complete an “apples to apples” comparison for you.
No, we simply waive or pay the closing costs on your behalf. We encourage you to prove this to yourself by comparing our rates against other responsible competitors. We find that we win on the rate even while covering closing costs. You can also look at a market survey available on freddiemac.com, but be sure you thoroughly understand the rates that are presented. Specifically, in the Freddie Mac survey, these rates reflect various levels of discount points. Feel free to consult with us if you are comparing multiple offers.
Selling your home is a major financial transaction and can be quite disruptive to your daily life. We understand that you want to sell as quickly as possible for the best price. Using a seasoned, knowledgeable real estate professional to list your property has many advantages vs. a For Sale By Owner (FSBO):
Spring is still the most active season for selling a home, but recent research shows the winter market may be the best time to market your home due to limited inventory (and competition). Your MA will work with you to figure out the best timetable to meet your needs and to get the best price on your home.
Most renovations will not yield a positive return so we generally recommend against them. Only those that add livable square footage might increase the market value of your home, but it’s not a sure thing. Repairs that affect the marketability of your home might be necessary before putting your home on the market. Your MA will collaborate with you to make these types of decisions.