What is the Cash Ready Plus Program?
A mortgage pre-approval is designed to make the homebuying process easier. Getting a fully underwritten pre-approval from Mortgage Equity Partners means your loan officer and an underwriter have thoroughly reviewed your financial position. By issuing a pre-approval letter, we are stating that we have determined that you are likely to be able to get your future mortgage application approved if there are no substantial changes in your financial situation and employment status as you search for your new home.
Mortgage Equity Partners’ pre-approval program is called the Cash Ready Plus, which allows you to get pre-approved for a loan even without a property address. If you submit a complete application with your asset and income documentation, you will receive a conditional loan commitment from an underwriter to make a competitive offer on the home you want to buy.
What are the benefits of the Cash Ready Plus Mortgage Pre-Approval Program?
- You become a more prepared home buyer
- Your financed offer is now as competitive as a cash offer
- Getting a home loan pre-approval shows the house seller your readiness to purchase
- A pre-approval will give you an idea of the loan amount you can get approved for, which can save you time and effort by avoiding shopping for loans that are out of your price range
- Once the seller accepts your offer, you can improve your closing time by being pre-approved because most of the upfront work is completed
- As a Cash Ready Plus buyer with a fully underwritten pre-approval, you will be confident knowing what your best offer is
- Your Cash Ready Plus pre-approval is valid for multiple properties until your offer is accepted
If you’re looking to get pre-approved for a mortgage, here are the essential steps you should follow:
1. Check your credit reports and scores
The underwriters at Mortgage Equity Partners will review your credit report during the pre-approval process. To make the process easier, be sure your credit is in good shape.
2. Gather required documentation
Your loan officer will specify the documents needed for preapproval. These typically include proof of income, bank statements, and other financial information.
3. Calculate your debt-to-income ratio
Mortgage Equity Partners’ underwriting team will assess your ability to manage debt. Aim for a favorable debt-to-income ratio. To calculate your debt-to-income ratio, or DTI, add up all your monthly debt payments and divide them by your gross monthly income.
4. Avoid major financial changes
Hold off on major financial decisions (like opening new credit accounts, buying a car, or buying new furniture) until you purchase your new home and the loan is closed.
Once underwriting has completed the pre-approval process, you will receive an official letter showing how much you can borrow and making your purchase offer more competitive.
“Do your homework, get your financing lined up FIRST…then go find your house.”
–Michael Manieri, Regional Sales Manager, Mortgage Equity Partners
Many homebuyers wonder if a pre-approval letter is critical to the home buying process. While Mortgage Equity Partners’ loan officers continually recommend our Cash Ready Plus Program to our borrowers, some still wait until they have found the property they want to buy and then ask for a pre-approval letter to make an offer. This is a “no-no!”
“I relate it to calling your doctor and asking them to write you a prescription without scheduling an exam. In this correlation, the doctor couldn’t properly prescribe you the correct medicine without more information,” said Michael Manieri, Regional Sales Manager at Mortgage Equity Partners. “The same is true for a mortgage pre-approval. If you are a buyer and speak to a financial institution that asks you a few simple questions, then sends you a pre-approval letter…CAVEAT EMPTOR (Latin for buyer beware)! You must speak to an experienced mortgage lender, complete a full application, and send them the applicable documents (income, assets, etc.) before you get your pre-approval letter and make an offer on a house. You want to ensure that you qualify for the loan, are in the correct loan program, are comfortable with the estimated payment, and meet the loan approval guidelines.”
A mortgage pre-approval is critical when you are looking for a new home. Our Cash Ready Plus Pre-Approval Program will give you a significant advantage. Realtors prefer an official pre-approval to help you in your home search instead of a pre-qualification. However, whether you get pre-approved or pre-qualified, both options show you are a serious buyer and offer insight into how much you can spend on your new home. Our knowledgeable loan team can explain in detail the best practices to get your offer accepted, so contact us to learn more!
