What is a Loan Status Report?
NOTE, as of February 2011, the Loan Status Report is no longer part of the Arizona Residential Purchase Contract. There is a Pre-Qualification form that is used instead.
In Arizona, our Residential Real Estate Purchase Contract includes a section for financing that requires a document called the Loan Status Report be included with the contract if financing is being sought by the buyer. If the transaction is a cash transaction, we skip this requirement.
The Loan Status Report, as required by Section 2d, Lines 62-63, which states that:
“The AAR Loan Status Report (“LSR”) with, at a minimum, the Buyer’s Loan information section completed, describing the current status of the Buyer’s proposed loan, is attached hereto and incorporated herein by reference”
is required if you’re seeking financing.
Why? Because the seller needs to know that you’re serious about buying the house, and that you’re actually able to buy the house. When you open escrow, the status of the property will be changed from Active, to either Active with a contingency (AWC) or Pending. This makes it less likely to attract attention, and essentially “takes it off the market.” Time is money, and of the essence in a real estate transaction.
Feel free to download a sample LSR today![download id=”4″ format=”1″]