Getting a valuation for a bank (but not by the bank)

[luckyone]

Hi Everyone,

I was hoping to get a valuation done on one of my property's as I believe it has significantly gone up in value. I was hoping to avoid going down the path of going through a loan application as I don't really want another hit on my credit rating.

Anyway, I rang up the bank and explained my situation to find out which valuer(s) I should use for my valuation to ensure it is acceptable to the bank. The not-so-helpful person on the other end of the line informed me that they can't guarantee that any valuation that I get will be accepted by the bank (Wesuck if that helps). I mentioned that I had previously been informed that Herron Todd White were the valuers that they use and was this correct? She infromed me that they weren't allowed to divulge that information and that whoever had told me had breached their duties (seriously wtf?).

So I said to her that then really the only solution is to go for the top-up loan and see what I end up with. She said that I could get some free valuations from real estate agents which might help me get an idea of it's value. As I have done this in the past and the banks valuation has come in considerably less than that, I informed her that this idea didn't seem to work for me.

So that's about as far as I got.

Any ideas? If I do go and get a valuation done, will they really not accept it? Or was this staff member really just being unhelpful?

 

[luckyone]

Oh, and the property in question is in Canberra.

 

[buzzlightyear]

I was hoping to get a valuation done on one of my property's as I believe it has significantly gone up in value. I was hoping to avoid going down the path of going through a loan application as I don't really want another hit on my credit rating.

Any loan top up will still need to have financials submitted, so you won't be able to avoid an enquiry by the bank on your credit history. Why are you concerned?

Anyway, I rang up the bank and explained my situation to find out which valuer(s) I should use for my valuation to ensure it is acceptable to the bank. The not-so-helpful person on the other end of the line informed me that they can't guarantee that any valuation that I get will be accepted by the bank (Wesuck if that helps). I mentioned that I had previously been informed that Herron Todd White were the valuers that they use and was this correct? She infromed me that they weren't allowed to divulge that information and that whoever had told me had breached their duties (seriously wtf?).

This exact thing happened to me about 3 years ago. Almost verbatim. So just in case you thought it was just you, it's not.

So I said to her that then really the only solution is to go for the top-up loan and see what I end up with. She said that I could get some free valuations from real estate agents which might help me get an idea of it's value. As I have done this in the past and the banks valuation has come in considerably less than that, I informed her that this idea didn't seem to work for me.

Following that conversation, you won't get those 5 minutes back either. Know that feeling. Depending on what LVR you are using, property location etc, you may find the bank does a Restricted Access Valuation (ie database of sale results for similar properties) and not a full val. This may or may not be good for you. So if you have done a full renovation, you may find the database results may not reflect this added value.

My suggestion is that if you need the extra funds, put in a normal application and go through the process.

 

[luckyone]

Any loan top up will still need to have financials submitted, so you won't be able to avoid an enquiry by the bank on your credit history. Why are you concerned?

Hi Buzz,

The only reason I dont' want to do the valuation through the bank is I just want to make sure that my estimate on the property is at least close to the price that they're going to put on it, otherwise I may not get the top-up approved, and it's another hit on my credit rating for no good reason.

I know some people say not to stress about your credit rating, but before I became informed by this forum I applied to a number of lenders for my first home loan to find out who would give me the best deal. This completely wrecked my credit rating, and now that it's clear again I don't want to repeat the same mistake.

 

[tobe]

If having one less hit on your credit report is worth $500 to you, then get a valuation done. The bank may ask for the same valuation to be assigned to them, or they may send it their valuer for comparision, or they may disregard it entirely.

Having a couple of hits on your credit report can impact FHB's loan chances, as the credit score doesnt have many other things to 'score', as they havent had a home loan before. Its not so much an issue for investors and second home buyers, as long as the amount of credit enquiry is legitimate for a person of your circumstances.

The credit scoring system that marks you down for having a few credit enquiries also marks you up for having a mortgage with the same lender, a job for more than a year or so etc. Your credit score (as opposed to your credit file) or chances of getting approved are most likely going to be impacted more by things like the purpose of the funds requested, (refinances, or top ups are considered risky) and the conduct of any existing lending.

 

[jacbmw]

My suggestion is that if you need the extra funds, put in a normal application and go through the process.

Do you mean a application for top up, or another "normal" application for finance for the property, not necessarily from the same lender?

 

[NataleaK]

Bank of Qld use HTW as well..

 

[Qlds007]

So do most of the lenders in Australia.

 

[peaches]

Some lenders will accept reassigned valuations from a panel valuer eg: CBA but many won't and few if any where LMI applies. Also keep in mind that panels change and a valuer may not have national acceptance ie: a valuer may only be on the panel for one state or metro area.

If you just want an idea get your broker to order a CBA customer ordered valuation for $99 - the valuation is yours and does not involve a CRA inquiry however the valuation may not be accepted by Westpac.

 

[Rolf Latham]

Hi

Unless things have changed recently, WBC uses only ONE panel valuer for a particular PC.

That means if you order a val for mortgage purposes and get an ok result there , then the lender will order their own at app time

Unlikley u will get a diff result

ta
rolf