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  • Profile photo of kendo5181kendo5181
    Member
    @kendo5181
    Join Date: 2005
    Post Count: 27

    Hi all,
    I would like some help. I have found a deceased estate property that I have had independently valued at $440K that is selling sell for around $400K, I would like to know is there any broker that has access to a low doc loan at 90% to valuation price rather than contract price so I can purchase this (90% – $440K/$396K) and contribute only $4K, the $20K stamp duty and maybe a few grand LMI? I am happy to pay a higher interest rate as it is a fixer-upper and I will refinance in a year or so..
    Thank you thank you thank you[fear]

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi kendo,
    A 90% low doc based on value and not contract price will be very hard to get,
    However another option to consider may be a 95% low doc based on contract price,
    I have access to a very good 95%LVR low doc product at 8.99%
    the interest rate reduces after 3 years and has free redraw and no fees, Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Don’t get hung up on the independent valuation either. The lender will order a new valuation for ‘mortgage purposes’. These are often very different to what you get when you order your own.

    TMA


    http://www.email4money.info
    Investor Links
    First Home Buyer Website


    Profile photo of kendo5181kendo5181
    Member
    @kendo5181
    Join Date: 2005
    Post Count: 27

    TMA, what if the valuer from whom I received the valuation is one of those on the panel of the financier… could I then consider it acceptable?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I had one of those recently. Client ordered their own valuation which come in over the price they eventually agreed upon. They then applied for finance with the bank ordering the valuation with the exact same company. The valuation this time came in much lower than before at contract price.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Kendo, you have to ask the valuer if they will assign to a specific lender. In most cases, they will say no because valuations for lending purposes have different guidelines and the valuer may be kicked off a panel if they do not do it the way the particular lender wants it done.

    In my experience, I still see no benefit in ordering your own valuation when seeking finance other than giving you a bit of support if you have to dispute a low valuation from a lender. I would not sign a contract based on it though.

    TMA


    http://www.email4money.info
    Investor Links
    First Home Buyer Website


    Profile photo of grossrealisationgrossrealisation
    Member
    @grossrealisation
    Join Date: 2005
    Post Count: 1,031

    hi kendo
    banks don’t like to (a) change valuers or (b) use one you like, but they do use valuers that brokers who work for them recommend.

    So find a broker you can work with and save on the valuations, also tell the broker what you want to achieve I here there’s a bloke flogging 95% lvr low doc 8.99% loans not sure what he’s like but sound ok

    For what it worth I had a commercial property valued on three occasions for three different bank as part of equity loans and they were ($1,000,000.00,$450,000.00 and $950,000.000 same building 5 years between first valuation and last.
    lucky I didn’t need the cash.

    good tip is always get a business card from the valuer they come in handy when talking to your broker as he can take to bank to assist.

    here to help

    Profile photo of Penfold_2Penfold_2
    Member
    @penfold_2
    Join Date: 2004
    Post Count: 8

    Offer 425k for the house with the vendor to pay the stamp duty and LMI ( or similar)The lender of your chose will then send a valuer out and hopefully value the property at 425k(remeber your valuer valued it at 440k.You could then lend 95% of 425k($403750) and add your 24k that you said you were going to put into the deal!!!!!!!!!!!
    DID THAT MAKE SENSE?

    Profile photo of kendo5181kendo5181
    Member
    @kendo5181
    Join Date: 2005
    Post Count: 27

    thanks guys for the input, and yes penfold, that did make sense!!
    Kendo.

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