Hi…new here and dont know where else to find out about this…..Does anyone know of situation where….. bank valuation came back at agreed purchase price. Following building and pest we renegotiated a lower purchase price by $20k to cover some issues. Mortgage company has now asked the valuer to revise the valuation to new lower purchase price and valuer has requested our building and pest reports…..is this normal??? I thought valuation based on what they see and market, land etc….any help appreciated cause i cannot find any info on similar situation..
No not at all lenders lend against purchase price or valuation whichever is the lower and the valuer will want to revise his valuation once they are away the contract price has been amended.
Cheers
Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.Richard Taylor | Australia's leading private lender
Agree with Richard.
That’s one of the issues to consider when applying for a loan – and then arranging a discount on the purchase price.
The bank will lend against the new purchase price – which means the loan application needs to be reworked.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks for response….i am unsure what to expect the valuer to come back with as how can he assess what he reads in building and pest inspection when their comments are so general….and valuation is based on similar properties and sales…how can they forsee that these did not have building and pest issues…i am just baffled that if we had gone ahead with the original purchase price the valuation would have been as per original….no questions asked!! It is a very loose science….why dont lenders require a valuation to be done with same considerations of building and pest inspection then?? I am thinking we should just ditch current application and go with new lender…i just dont know what we are to expect back from the valuer now!!
Thanks again for any assistance…Switching lenders won’t get round the valuation issue.
Your new lender will want a copy of the contract of sale showing the amended purchase price and will pass this onto the valuer.
Only reason you would look at switching lenders is if your current lender doesn’t meet your objectives.
Cheers
Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.Richard Taylor | Australia's leading private lender
Completely normal – generally where possible it’s best to get any negotiations out of the way before the finance being submitted – to stop any reworks being required.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Yes….a learning i will take away from this whole process…still no idea what outcome we can expect….thanks for shedding some light on this matter…hopefully it will help others to avoid this situation.
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