I have had several inquiries as to the function of a LSR - so here goes...

LSR is an acronym for Loan Status Report.  After an application is taken by a 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.

We 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 then you are offering, it will sometimes 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 the lender with a significant amount of 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

•·         Let them pull your credit

There are many other questions a lender can ask you to qualify you for a LSR that are specific to every borrower.

JIM CUNNINGHAMJim Cunningham

Community First Financial, LLC

7575 E Redfield Rd   Suite 235

Scottsdale, AZ  85260

480-305-8900 ext 305 - office

480-907-2435 - fax

602-434-8261 - cell

jcunningham@communityfirstfinancial.com

www.communityfirstfinancial.com

www.jimcunninghamcff.blogspot.com