How can I build my credit score?

Open an OpenSky secured credit card. Your initial credit limit is determined by your security deposit, as little at $200 or up to $3,000 (subject to approval). You can use your secured credit card like any credit card to make purchases such as gas or groceries, or for recurring phone bills, without changing your total monthly budget. And, just like a credit card, you make monthly payments of principal and interest. OpenSky builds credit by reporting to all three major credit bureaus monthly. By managing credit responsibly and making on-time monthly payments you can improve your score.

What credit score do I need to qualify for a mortgage?

FICO score requirements vary by mortgage loan program, FICO requirements for an FHA or VA loan may be lower than a Conventional 30-year fixed mortgage, however we generally suggest a minimum of a 620 FICO score when applying for a mortgage. You are entitled to an annual free report from each agency, available from AnnualCreditReport.com. look for errors such as old debts you’ve paid off or items that aren’t yours. Take steps to dispute errors and follow up to make sure they’ve been corrected; these can take time to resolve.

Does Capital Bank Home Loans offer down payment assistance?

Our mortgage loan experts have access to various down payment assistance programs, and they vary by county and state. The best way to know your options is to speak with one of our mortgage loan officers.

Who is eligible for a VA loan?

Current service members, veterans and eligible surviving spouses could qualify for a VA backed home loan. If you qualify for a VA home loan, a portion of your mortgage is secured through a private lender, guaranteed by the VA. As a government backed loan there are different requirements designed to reduce the financial burden to the borrower through various benefits. Unlike conventional mortgages, buyers who qualify for a VA home loan do not need to make a down payment on their prospective property. Instead, veterans and service members can put that money into their savings, projects, or other necessary costs..

Can I qualify for a Federal Housing Administration (FHA) loan?

An FHA loan is a government insured home loan with more flexible lending requirements than a conventional mortgage. FHA loans have lower credit score requirements and down payments as low as 3.5%, making them a good option for first time homebuyers. While mortgage insurance with an FHA loan can be more costly than with a conventional loan, it may still be a great option to get you into your first home.

Do I need to put down 20%?

There may be alternatives to providing a 20% down payment on the purchase of your home. You can choose to pay Private Mortgage Insurance (PMI) premiums with your monthly payment on a conventional loan and reduce your down payment to 15% down, 10% down, 5% down and in some instances for a 1st time homebuyer as little as 3% down. Other options include FHA insured loans, which require Mortgage Insurance Premiums (MIP), but have a down payment requirement of as little as 3.5%. Veterans Administration (VA) guaranteed loans also have low down payment options for qualifying individuals.

What’s the difference between pre-qualified and pre-approved?

A pre-qualification is a letter provided to a buyer from a loan officer. It is intended to provide an indication of the mortgage the buyer might qualify for. A pre-approval letter from a lender is a letter that indicates a conditional commitment to lend. Conditions will apply to items not completed yet like an appraisal or title work, as well as items that may still be needed from the buyer. However, it allows the loan originator to firmly state that the buyer qualifies for a specific mortgage dollar amount, provided all conditions are eventually met and based on an underwriter’s review of their financial information - including their credit report, pay stubs, bank statement, salary, assets and obligations which is documentation provided by the buyer.

How can I build my credit score?

Open an OpenSky secured credit card. Your initial credit limit is determined by your security deposit, as little at $200 or up to $3,000 (subject to approval). You can use your secured credit card like any credit card to make purchases such as gas or groceries, or for recurring phone bills, without changing your total monthly budget. And, just like a credit card, you make monthly payments of principal and interest. OpenSky builds credit by reporting to all three major credit bureaus monthly. By managing credit responsibly and making on-time monthly payments you can improve your score.

What credit score do I need to qualify for a mortgage?

FICO score requirements vary by mortgage loan program, FICO requirements for an FHA or VA loan may be lower than a Conventional 30-year fixed mortgage, however we generally suggest a minimum of a 620 FICO score when applying for a mortgage. You are entitled to an annual free report from each agency, available from AnnualCreditReport.com. look for errors such as old debts you’ve paid off or items that aren’t yours. Take steps to dispute errors and follow up to make sure they’ve been corrected; these can take time to resolve.

Does Capital Bank Home Loans offer down payment assistance?

Our mortgage loan experts have access to various down payment assistance programs, and they vary by county and state. The best way to know your options is to speak with one of our mortgage loan officers.

Who is eligible for a VA loan?

Current service members, veterans and eligible surviving spouses could qualify for a VA backed home loan. If you qualify for a VA home loan, a portion of your mortgage is secured through a private lender, guaranteed by the VA. As a government backed loan there are different requirements designed to reduce the financial burden to the borrower through various benefits. Unlike conventional mortgages, buyers who qualify for a VA home loan do not need to make a down payment on their prospective property. Instead, veterans and service members can put that money into their savings, projects, or other necessary costs..

Can I qualify for a Federal Housing Administration (FHA) loan?

An FHA loan is a government insured home loan with more flexible lending requirements than a conventional mortgage. FHA loans have lower credit score requirements and down payments as low as 3.5%, making them a good option for first time homebuyers. While mortgage insurance with an FHA loan can be more costly than with a conventional loan, it may still be a great option to get you into your first home.

Do I need to put down 20%?

There may be alternatives to providing a 20% down payment on the purchase of your home. You can choose to pay Private Mortgage Insurance (PMI) premiums with your monthly payment on a conventional loan and reduce your down payment to 15% down, 10% down, 5% down and in some instances for a 1st time homebuyer as little as 3% down. Other options include FHA insured loans, which require Mortgage Insurance Premiums (MIP), but have a down payment requirement of as little as 3.5%. Veterans Administration (VA) guaranteed loans also have low down payment options for qualifying individuals.

What’s the difference between pre-qualified and pre-approved?

A pre-qualification is a letter provided to a buyer from a loan officer. It is intended to provide an indication of the mortgage the buyer might qualify for. A pre-approval letter from a lender is a letter that indicates a conditional commitment to lend. Conditions will apply to items not completed yet like an appraisal or title work, as well as items that may still be needed from the buyer. However, it allows the loan originator to firmly state that the buyer qualifies for a specific mortgage dollar amount, provided all conditions are eventually met and based on an underwriter’s review of their financial information - including their credit report, pay stubs, bank statement, salary, assets and obligations which is documentation provided by the buyer.