Looking for Houses without an LSR

May 5, 2009 at 1:30 pm Leave a comment

A buyer emailed me recently to ask if he could go ahead and see homes for sale without a Loan Status Report (LSR). My answer was no, and I gave him a brief reason why. So many buyers want to look at homes without even knowing what they financially qualify for. To look at homes without an LSR or pre-approval letter is like going to war without a weapon. Below are reasons why a serious buyer must have a LSR ready to go before looking at homes:

1. YOU’LL KNOW WHAT YOU CAN AFFORD – Buying a home is not only about LOCATION, it is also about FINANCING. The LSR is a one-page document that is meant to help you find out how much you can be approved to borrow, as well as what your closing costs will be, your estimated monthly mortgage payment, etc., so you will be looking at homes that you can qualify for and be financially prepared for. It is important to find this information out UP FRONT than to be surprised later.

2. AN LSR IS A REQUIRED DOCUMENT FOR AN OFFER – No seller will accept an offer on their home without the buyer presenting an LSR, unless it is a cash offer. So, if the buyer falls in love with a house and does not have an LSR , he or she could lose the house to someone else who has an LSR ready.

3. LENDER CONDITIONS –
The LSR alerts the buyer and Realtor of any lender conditions on the purchase of the home. Say for example, a seller offers closing cost assistance for the buyer. This condition and other conditions will be negotiated in the buyer’s offer.

4. YOU’LL SAVE TIME – We save everybody’s time if the buyer has an LSR ready to go. With an LSR, all parties know that the buyer is qualified to buy a home at a certain price range. They are also aware of any lender conditions, making the entire buying process simpler, easier and faster.

On the other hand, if you are not ready to buy a home or have some conditions that need to happen prior to buying, It would be good to look at houses on your own and at your own pace to get a feel of the market. Once you are ready to buy, contact a reputable Realtor such as myself, and a lender to help you with your pre-approval and LSR.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , .

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