All Topics / Finance / Approval pending property valuation.

Viewing 7 posts - 1 through 7 (of 7 total)
  • Cam
    Participant
    @cams
    Join Date: 2016
    Post Count: 4
    January 13, 2016 - 2:06 pm

    Hi all,

    I have exchanged contracts on a property and have a few days left on the cooling off period. I have approval on the loan (90% LVR) pending valuation on the property. I am just curious, what is the “pass mark” that banks would approve the loan on ? When the offer was accepted on the property. The RP Data valuation was 20k higher than what it is now.

    I was wondering if there is someone with a bit of industry insight. Can tell me how it works

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    January 13, 2016 - 3:41 pm

    Pass mark is generally what you said the property is worth, as well as there being no adverse issues such as being uninhabitable and/or high risk ratings.

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

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    January 13, 2016 - 4:06 pm

    As long as there’s no issues with the valuation you should be in the clear. The vast majority of valuations come back at purchase price.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010
    January 13, 2016 - 10:13 pm

    Valuer will just value it against recent property sales in the area – rarely does this come back below purchase price – almost never above.

    The real clincher is if its rated as a high risk in any of the factor areas – environmental, market etc. This will generally only happen is the property is in significant disrepair, missing essential facilities such as kitchen or bathroom or is sitting next to a power substation/High voltage power lines.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Cam
    Participant
    @cams
    Join Date: 2016
    Post Count: 4
    January 13, 2016 - 11:13 pm

    Thanks Guys,

    I got it for a price cheaper than similar properties. Building inspection came back good. No other external risk factors. I guess I’m just being super cautious. I hate being so close to the deadline

    Regards,
    Cam

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    January 14, 2016 - 4:12 am

    Cam what you paid for it will have little bearing on the valuation.

    It will still come back at contract price.

    Cheers

    Yours in Finance
    0-40 Properties in a decade. Ask me how.

    Richard Taylor | Australia's leading private lender

    Cam
    Participant
    @cams
    Join Date: 2016
    Post Count: 4
    January 15, 2016 - 1:46 pm

    Thanks for all the responses. Valuation came back spot on my offer amount and I received formal approval later that day.

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.