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What is a Loan Status Update Form?
A Loan Status Update, also known as a LSU, is a document specific to the state of Arizona that shows updates to the transaction between a buyer and a seller. It helps real estate agents communicate with the buyer and seller realistic expectations, as well as other details throughout the entire process of the loan.
We want to make sure you’re familiar with this form and know how to read it. You can view the form below to reference as you read this post, or you can just follow along in with the video.
The Loan Status Update Form
When you take a look at the LSU, you’ll see that each step of the process and most inquiries you might have can be answered by the line items.
Line items 4-12 show lender information as well as the close of escrow date, the buyer, the seller, and the address of the property.
Line items 13-36 show pre-qualification info. In particular, when looking at this section you want to pay attention to the Interest Rate. Often, you’ll see this line filled in with the word “market.” This is because markets can swing up or down and the interest rates might change. It’s not until we fill out the LSU that we lock in the interest rate.
Line items 32-35 will show you what documentation has been received. Ideally, you want to see almost every box marked “Yes” or “N/A.” If you’re in process and the lender doesn’t have that information that would be a red flag. Should that be the case, you should ask them to follow up regarding the missing information.
On the second page(line items 41-71) of the Loan Status Update is the rundown of timeline events from submitting social security numbers and addresses all the way to closing. To the right of each item is a space to put the date when that task was completed followed by a space where the lender initials. When reading a LSU you want to see a date completed and initial at every line item. Pay particular interest to the line where it says the “lock expiration date.” You want to make sure that the date covers the close of escrow.
Who uses LSUs?
Keep in mind that the LSU is looked at primarily by the listing agent and the seller. This document is what keeps them informed during the selling process. While the buyer and lender are the ones completing most of the tasks, this document keeps the seller up to date on the state of the pending sale. Ideally, it should be sent out each week.
If you have any questions at all about Loan Status Updates, prequalification forms, or any part of the business, please reach out to us at firstname.lastname@example.org.