If I’m applying for a mortgage through a bank, financial institution, when do I pay for the valuation fee?
I’m confused. Assuming the bank will want to value the place before giving me the loan, if I’m turned down, will I still be hit with an exorbitant application fee?
I’m sounding a bit naive here I know, though unless I ask, who’ll tell me.
How else can I get a proffessional valuation on a property at a reasonable price?
Salutations, Adofunk
The mainstream lenders won’t charge you a valuation fee, if they perform a valuation and the loan is declined.
Some of the smaller lenders will charge you the valuation fee upon application and will not refund the fee if your loan is declined. This could cost you about $200-300. Should your loan be declined they shouldn’t charge you any application fee.
In relation to valuers you are best to utilise the bank of your choice panel of valuers or maybe try the Aust Institute of valuers for a recommendation. [
]Hi,
My experience is that the valuation fee is part of the application fee. This is then payable at the time of settlement when all the money is being divvied up.
Bye
Steve McKnight
**********
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Adofunk
ask your lender if you can have a copy of the valuation.
we have had siutations where some lenders would not do this and we had to pay the valuer extra $’s if we wanted the written report
cheers
Bruce
Adofunk,
Enquire with the lender if they will reduce the application fees if you have already had the property independently valued.
That way you get the entire report, all the information & no hassles (+ it’s deductable) even if you don’t go ahead with the investment.
Michael [
]Bruce, as per your post ensuring that the bank give a copy, I have a question. My partner and I purchased our first just over a year ago now and have only recently been advised that the 2pager val’ that we got is not the complete one and we should persue the bank for a copy of the complete written val as we’re entitled to it and it’s a tool we can use down the track. I called our bank, and they were very vague about this. The response I recieved was that they would get back to us, I havent heard. Should I pursue this or is it a lost cause? If we are entitled to it why are they making it so hard to give us the entire report?
Dear All
My understanding is that the valuation done by the valuers for the Bank Valuation is done specifically for the bank for loan purposes only. Any one correct me if I am wrong but it is a type of fire sale valuation.
The bank I deal with will tell me verbally the valuation they have put on the investment, but they never give me the valuation in writing. I later try and get the same valuers the bank has used to re value my investment after I have improved the building and re-present this back to the bank and then re mortgage the building on this new improved valuation, which then gives me the equity to buy another.
My bank requests that I pay the initial valuation fee upfront it is usually $250.
Cheers IsagoldShould I pursue this or is it a lost cause? If we are entitled to it why are they making it so hard to give us the entire report?
[/quote]Evening all
Ursh246
It is quite possible to get a full copy of the valuation done for a lender. You need to locate a lender that will do so and if not it is up to your negotiating skills.A valuation’s cost is usually paid for by the the borrower so rightfully it belongs to the borrower.If its what you want and they won’t supply, move on.
Interestingly, last year a property that we purchased was of course valued by the lender,val was supplied to us and the deal closed.Now the property was a 4bed but the valuer (for some reason ) missed that fact and valued it as a 3bed.Now that gave us instant equity of an extra bedroom without doing, or spending a thing!!!!!!
Cheers
Rob
“A bank is a place where where they lend you an umbrella in fair weather and ask for it back when it begins to rain
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