What is a LSR?
We have had several inquiries as to the function of a LSR - so here's the answer...
LSR is an acronym for Loan Status Report. Simply put, the Loan Status Report (LSR) is a pre-approval letter that a lender provides for purchasing residential real estate in Arizona. The purpose of the LSR is to describe the buyer’s loan and allow the seller to evaluate the buyer’s ability to obtain the necessary financing to complete the transaction.
After an application is taken by your lender, and they perform their due diligence to approve you in good faith, you get a Loan Status Report. This document states that you have consulted with a lender and you are pre-approved to purchase a house. The letter will have a maximum dollar value on it indicating how much money you have been approved for. It will also indicate what kind of financing you are approved for and the amount of your down payment. This letter is usually submitted with a purchase contract to notify the seller that you have your money, and you are a serious buyer.
Don and Maureen recommend that you always request a custom LSR for each offer you submit. We are firm believers in showing that you are only approved for the amount you are willing to offer. By submitting a LSR showing that you are approved for more money than you are offering, it could influence the seller to not reduce their price during negotiation because you obviously have the money to pay more. |
To acquire a LSR you are going to need to provide your lender with accurate information. Here is a short list of items that they will definitely ask you.
- Name
Social Security number
Contact Information
Residential address for the last 2 years
Work history for the last 2 years
Income
Assets
There are other questions a lender can ask you to qualify you for a LSR that are specific to every borrower, but this quick & free conversation provides you with an important key in finding your new - old home!
Just Call Don at (602) 795-2260 or Maureen at (602) 327-1781
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