Can I benefit from an upfront property valuation?

Any general questions you might have in regards to loans and finance.
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Betty Boop
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Joined: Mon Jul 15, 2013 1:18 pm

Can I benefit from an upfront property valuation?

Post by Betty Boop »

Hi everyone,

I’m here because my friends told me that I could get all of my home loan queries answered in this forum. Well, I was wondering how an upfront property valuation is different from a regular property valuation. Can anyone please help me distinguish the two?

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Otto Dargan
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Re: Can I benefit from an upfront property valuation?

Post by Otto Dargan »

Hello Betty Boop and welcome to the forums.

An upfront property valuation is the valuation of the property you wish to purchase before you apply for a loan.

If you plan on getting an upfront valuation, you may enjoy a number of benefits:
  • Your credit file is not damaged. Each time you apply for a loan, an enquiry is recorded in your credit file which may have a negative effect on your credit score. An upfront property valuation may help you avoid too many enquiries on your credit file.
  • An upfront property valuation allows your mortgage broker to determine whether a property will be accepted by your lender or not. You may apply with a different lender if your property does not meet a lender’s requirements.
  • The valuation may speed up the mortgage application process by having the lender approve your loan immediately.
  • The valuation will not get lost or delayed. Some brokers may be able to track your valuation request and quickly follow up with the valuer if there are delays.
Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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Betty Boop
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Joined: Mon Jul 15, 2013 1:18 pm

Re: Can I benefit from an upfront property valuation?

Post by Betty Boop »

I’ve also been thinking about valuing the property myself. Where can I find out more about this? I want to be sure that banks will let me get an upfront property valuation easily. Can you clarify this to me as well?

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Otto Dargan
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Re: Can I benefit from an upfront property valuation?

Post by Otto Dargan »

Hi Betty Boop,

Most lenders may not use a buyer’s own valuation of property, or may accept them only under exceptional circumstances. If you are interested in valuing a property yourself then you can have a look at the buyer’s own valuation guide.

If you want an upfront property valuation then many lenders may allow you to get one. Some of these lenders include:
  • AMP - Free.
  • ANZ - Free.
  • Bankwest - Free.
  • Commonwealth Bank (CBA) - Free.
  • Gateway Credit Union - Free.
  • Homeside - Free.
  • Macquarie Bank - At a cost of $50.
  • National Australia Bank (NAB) - Free.
  • Pepper Home Loans - At a cost of up to $500.
  • St George - Free.
  • Suncorp - Free.
A number of lenders may conduct upfront valuations on a case-by-case basis.

In some cases, the lenders may assess your property and loan to be a low risk and choose to complete an automated desktop valuation, AVM, or a drive by valuation. In such cases, the lender may only inspect your property if your application is audited, or deemed to be a high risk later on. Some lenders may order a full valuation if the automated valuation comes in below value.

If you would like to know more about these then you can talk to one of our experts directly on 1300 889 743 or you can enquire online. You can also go through our website for more information.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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Betty Boop
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Joined: Mon Jul 15, 2013 1:18 pm

Re: Can I benefit from an upfront property valuation?

Post by Betty Boop »

Thanks a lot for the info, Otto. I don’t think I could go through with my plans if it weren’t for your help. I’ve decided to get an upfront valuation. In order to make sure that nothing goes out of place, I plan on calling you. You can expect a call from me within this Thursday. Goodbye.

alexjong
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Joined: Wed Jun 17, 2009 5:21 pm

Re: Can I benefit from an upfront property valuation?

Post by alexjong »

Hi,

I’ve been thinking about getting pre-approved on a home loan right now so I don’t have to worry much later. Upon sharing this thought with my uncle, he said that I needed to be careful because not all pre-approvals may be reliable. Can anyone tell me which banks may not give out reliable pre-approvals?

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Otto Dargan
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Re: Can I benefit from an upfront property valuation?

Post by Otto Dargan »

Hi alexjong,

You may be surprised to know that there are several lenders who may frequently give unreliable pre-approvals. A few of these lenders are:
  • St George Bank - Their pre-approvals do not always go to their credit department, and almost never go to their mortgage insurer.
  • Westpac Bank - Their pre-approvals are system generated and do not go to their credit department.
  • Suncorp Metway - Their pre-approvals go to a file owner and not a credit officer for formal assessment. The pre-approval that was issued by the file owner is often disapproved by the credit department.
  • ANZ Bank - They often give on the spot pre-approvals that are unreliable as they have not been assessed by the credit department.
  • NAB - Their pre-approval is often just an assessment of the customer’s borrowing capacity, and generally do not go to their credit department for approval.
  • Rams Home Loans - They do not offer pre-approvals. However, they simply offer a confirmation that you appear to be able to afford the loan.
Most of the major lenders offer on the spot pre-approvals which are unreliable. If you want a reliable pre-approval then you need to request a full assessment from the credit department of the lender.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

alexjong
Posts: 60
Joined: Wed Jun 17, 2009 5:21 pm

Re: Can I benefit from an upfront property valuation?

Post by alexjong »

It seems like I need to be very careful when getting a pre-approval. I obviously don’t want my efforts to go to waste. Thank you for helping me understand this better, Otto. I may call your office soon to learn more. Bye.

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