When you purchase a property, during the loan application process the banks will send out a valuer to assess the true value of the property you’re buying. And you will be charged for this service.
Here’s how we help our clients.
Instead of undergoing a property valuation after the loan application has been lodged, we will sometimes order an upfront valuation.
Upfront valuations are done by an accredited valuer who has been authorized by the bank, and they take place before the loan application is submitted.
The valuer inspects the property and reviews all the other property sales in the area over the past few months. If there have been few sales, the valuation may come in low. If there have been many sales, the valuation is likely to come in high.
The advantages of upfront valuations include speeding up the loan process and protecting your credit file. Plus the lender will pay for the valuation regardless of whether you go ahead with the application or not.
Speed Up the Process of Buying or Refinancing
Upfront property valuations are a great way to get the facts before you go ahead and lodge a loan application with a lender. Due to our extensive knowledge of lender requirements, we will have a clear idea about the probable outcome of the application once we see what the valuation comes in at. We can then advise you on whether to proceed with this lender, or to consider a different home loan product with a different lender.
Protect Your Credit File
Did you know that every time you apply for a loan, it leaves an enquiry on your credit file? Too many enquiries can damage your credit score. By opting for an upfront valuation, the probable outcome of your loan application will become clear, and we will be able to determine whether or not to go ahead with the loan.
What Happens if Your Valuation Comes in Short?
If your valuation comes in short, the outcome will depend on your situation:
- If you are buying a property and the valuation falls short, this means that the purchase price is above the value of the property. This is not necessarily a bad thing, as it gives you the opportunity to renegotiate the price with the seller.
- If you are considering refinancing and the valuation falls short, we may challenge the lender’s valuation, or seek a valuation from another lender, to see if it comes in higher.
If you are looking for help with a home loan – either to purchase your next property or refinance an existing property – don’t hesitate to call our friendly team at Our Mortgage Options on 02 9068 6644.