jackg, I helped a fellow buy a home in Michigan a couple years ago who also went by "jackg" on the internet websites... that is why I ask if you are the jackg 
RR, I gotcha now... yeah, if you plan on closing the account, then definitely ask for a CL first. But think about what I said about them charging an annual fee, if they don't, then don't close it is my suggestion.
That "how much can I afford" question is a little loaded... do you mean how much can you qualify for? How much you can afford is a personal question, but qualifications basically say your debt ratio would have to be 45% or below if you are going for a jumbo loan amount (over $417k on a 1-unit), so with that said... $500k seems pretty probable as far as the home price. That kind of price would buy you a huge home in the Sacramento area though, probably wouldn't need something that big (or maybe you would?).
The only thing wrong with Countrywide is that their rates are quite a bit higher than other places, they expect people to use them because they are... Countrywide, brand name recognition sells their services. I know this because my wife interviewed with them, compared their rates to what I could offer someone through Countrywide's wholesale division, and they were about 1/2% higher than my rates. OK I lied, the other thing that is wrong with Countrywide is that quite a few of their employees are "green" to the industry, meaning they haven't had a whole lot of experience when it comes to doing mortgages, seeing market trends, etc. They are taught to sell, not give "mortgage financial planning advice". This is not always the case though, I know of a great Countrywide LO who I am trusting to give my father-in-law a mortgage because I am not able to do a loan in his state, and she's doing an excellent job (she's also been in the industry for 6 years though). The rate is OK, not the best, but when it comes down to purchasing a home... rates aren't everything though, you really want to make sure you are working with someone who has a full understandig of your situation/needs. On a refinance the rate/terms are more important, but on a purchase you want someone who is always going to be there to answer every question, and pretty much any time you have them, and/or get back to you within a reasonable amount of time (no having to call or email 2-3 times just to get a response, etc.).
If you want to keep your rates low then look for homes to where after your down payment, you wouldn only be financing $417k or less... as those are considering conforming loan amounts, and thus qualify for lower rates than a jumbo loan amount... further the debt ratio can go up to 64.99% on a conforming loan amount, whereas the jumbo's, like I mentioned before, like to see 45% or below.
If you like the Bay Area, but are considering Sacramento, I'd think about somewhere inbetween... perhaps the Tracy/Mountain House market, Antioch, etc. In a year or two (when you think you'd be ready) the prices should be low enough there so you can find a good deal and still have a nice short (relative) commute to the Bay Area.
Definitely get pre-approved before you look for a home, you'll really need to go over your anticipated payments to make sure you are comfortable with the home you are looking at... each home is different, some have homeowners assocation fees, some have mello-roos tax (for new neighborhoods), some would require more expensive homeowners insurance than others, tax rates are different, etc. Your mortgage professional would go over each home's anticipated payment with you to make sure it fits your budget before you make an offer. Further, most real estate agents won't work with someone who isn't pre-approved... as it could be a waste of time, ya know? And it's Realtor
Hi, RR --looks like most of your questions are taken care of, but I wanted to toss this in, too: Once you've got your util down, only allow half of all your TL's to report, and only allow fewer than half of your CC's to report. TU loves it when you do this, and so do the others --this is what helped my recent 11/22 score jump.
So in your case, with 7 total TL's and 6 CC's, that means let the car loan and only two CC's report a balance (those CC's should be 9% or less of their individual CL's.) Have the other cards PIF'd (paid in full.) Time your payments to get them to the proper figure before your statements drop, because that is usually the $ figure that is reported to the CRA's. You should get a great response from this, and it appears that if you keep doing it, the scores keep climbing. You can have different cards report if you like; just make sure that each one gets used (not necessarily reporting) at least once every 6 months, and only two show a balance at any one time.
If you decide to do this, it is going to affect the decision to close those two CC's. The numbers won't change if you close one, but they will change if you close two. Then you'll only have 5 TL's and 4 cards, which means trying to have only the car loan and one CC reporting. So I agree with the others --only close if they have fees (I suspect the First Premie does), raise the CL on the other and let it show up on your credit reports at least once before closing, and if you're going to close both of them, you might want to get another and better CC first. And I am absolutely the last person on these forums telling people to go app for cards!
So in your case, with 7 total TL's and 6 CC's, that means let the car loan and only two CC's report a balance (those CC's should be 9% or less of their individual CL's.) Have the other cards PIF'd (paid in full.) Time your payments to get them to the proper figure before your statements drop, because that is usually the $ figure that is reported to the CRA's. You should get a great response from this, and it appears that if you keep doing it, the scores keep climbing. You can have different cards report if you like; just make sure that each one gets used (not necessarily reporting) at least once every 6 months, and only two show a balance at any one time.
If you decide to do this, it is going to affect the decision to close those two CC's. The numbers won't change if you close one, but they will change if you close two. Then you'll only have 5 TL's and 4 cards, which means trying to have only the car loan and one CC reporting. So I agree with the others --only close if they have fees (I suspect the First Premie does), raise the CL on the other and let it show up on your credit reports at least once before closing, and if you're going to close both of them, you might want to get another and better CC first. And I am absolutely the last person on these forums telling people to go app for cards!