Tuesday, 16th of June 2009 at 11:36:16 AMI sometimes get this question, why do I require an LSR before I will show homes. This is a basic policy that I and other agents have to protect our time and the emotions of our clients.
Let’s cover some basics first:
What is an LSR?
An LSR stands for Loan Status Report. This is a statement from the buyers that indicates how they plan to finance a home, what they expect for the terms of that loan and other dependences around financing. It’s also an indication from a Loan Officer of how far in the process you have gone to get that loan.
What if I’m making a Cash Offer?
Great, sellers love cash offers, less that can go wrong. But they will still want proof that the cash is there, so a bank statement is what they will be looking for (with sensitive data erradicated of course).
I’m just looking right now, we’ll get it when we find our next home.
Okay, I see your point, but that’s not a good idea. Let’s say we find your “next home” and we’re waiting on the LSR to make the offer, in the meantime someone else puts in an offer that is accepted and now it’s their “next home”. I don’t want to do that to you, so let’s get our paperwork lined up first.
I just want to look at this one house right now, I’ll get the LSR later.
I’ll drop everything I’m doing to take you to that house and work with you, but first I want to know that you are committed and capable of buying that house, so let’s get the LSR now.
Well, how long will it take to get an LSR?
Usually not long, if you have everything that the Loan Officer asks for and it looks good, they can have one ready the same day you talk to them. I’ll even send the Loan Officer a DocuSign version so everything moves very quickly.
What do I need to talk to the Loan Officer?
Generally speaking, you should have:
- Recent 2 months bank statements
- Recent 30 days pay stubs
- Recent two years W-2′s.
I agree the more prepared the purchaser is the better for their offer to get accepted. Many purchasers are reluxtant to get all the documents in before they pick a home. It is in their best interest to do it.