Question about the LSR form used in Arizona.

Asked by TW, Phoenix, AZ Tue Apr 27, 2010

From what I can tell having a completed LSR falls somewhere in-between being “pre-qualified” and “pre-approved”, with it leaning more towards being “pre-qualified”. Is having a completed LSR enough to convince a seller that a buyer is serious and can obtain financing? If not what additional steps can be completed by the buyer?

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Dusty Rhoton’s answer
Dusty Rhoton, Agent, Flagstaff, AZ
Thu Sep 2, 2010
Actually, the LSR form is about to change and it will most likely have a prequalified page which will most likely answer what "monthly payment" a buyer can afford rather than a price.

The proposed LSR draft has quite a bit more information as well which will assist the lenders in hopefully closing loans in a more timely and organized fashion to make it an smoother transistion for the buyers. Look for the new LSR form around October 2010 or so.
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Brad Bergami…, Agent, Prescott, AZ
Wed Apr 28, 2010
You are right on target.
A letter from you lender stating you have a copleted file on hand and you are credit worthy couldn't hurt.
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Roswell Moore…, Mortgage Broker Or Lender, Scottsdale, AZ
Wed Apr 28, 2010
Hi TW,

This is a very good question. I have always recommended to my clients that we go a step further than just a simple Pre-Qualification and that they become Pre-Approved. Sellers today, including the "Seller Banks" that are controlling all the foreclosures and short-sales, are now requiring a strong LSR before they will even look at your offer.

What's the difference between pre-qualification and pre-approval?

Pre-Qualification is the starting point in your search for mortgage financing. A quick snapshot is taken which includes income, existing debt, savings, length of employment, etc. All of these factors will then be analyzed to determine your loan eligibility.

Pre-Approval is written documentation that shows you have the support of a lender who is willing to finance you. It means an Underwriter has reviewed your loan application Based on your income, debt ratio and savings, the Underwriter provides the dollar amount you are eligible to borrow, based upon you meeting certain conditions, such as your property will appraise for the selling price, clear title, homeowners insurance, etc. Now you can shop around for houses that fit into that loan amount category with confidence.

Here is the nice thing about being Pre-Approved: It gives you the advantage to shop as a cash buyer! With a Pre-Approval in hand, you now have the power to negotiate. The seller will take your offer much more seriously knowing you are already approved by a lender. Pre-Approval will also shorten the time it takes to close, making even a lower bid attractive to sellers who are seeking to move quickly.

Hope that helps you.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
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Beth Till, Agent, Henderson, NV
Tue Apr 27, 2010
An LSR would be submitted with a written offer from the Buyer to the Seller... that should be enough to get "the ball rolling!" The next step would be an acceptance from the Seller (possibly after some negotiations on the terms of the offer.)
Then you will enter into Escrow and the Inspection Period. After that the Underwriter for the Buyers Loan will make sure the home is suitable to lend on and that it has appraised for the requested amount of the loan.
***Buyers should guard their credit (not buy anything like a new car or furniture for the new home until Escrow is closed, anywhere from 30-45 days) Escrow is not over until it's over!
If you have any questions you can email me at or call me at (928) 606-0442
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