Subject to finance clause
- Thread starter baby_fats
- Start date
Hiya
Basically, it is to allow you to get FULL or unconditional approval which includes some things over and above pre approval. Things like valuation and mortgage insurance are good examples
ta
rolf
Basically, it is to allow you to get FULL or unconditional approval which includes some things over and above pre approval. Things like valuation and mortgage insurance are good examples
ta
rolf
You just ask the CBA. Then they say "I'm not supposed to tell you, but ..." 
The valuation is paid by the CBA and is simply to help the CBA make a decision whether to approve (the mortgage).
Via your due diligence, in theory, you are supposed to know what the asset is worth that you have just offered to buy.
If you wish to have the valuation addressed to you, then hire the valuer yourself, preferably before you make an offer.
It's not normal business practice for one party to a contract (the mortgage) to pay for market knowledge and then simply hand it over to the opposing party in the contract for free.
Have you been involved with contracts before ?
Most lenders will happily tell you what the valuation is returned at - I've never had a lender not pass the information onto me verbally, but very few will give you a copy of the written valuation.
The notable exception is the ANZ (if you go through a broker, the broker manages the valuation process, thus receiving a copy). Quite a few mortgage managers will also hand over a copy of the val, but none of the other major banks will.
As stated, lenders order valuations for their own due dilligence on the property, not yours They'd probably agree that in most cases it doesn't hurt their interests to allow you to have a copy, but occassionally it might not be to their benefit. As a result they simply make it a policy not to give them out.
A valuation not only gives a price estimate, but it includes a risk analysis. Even if the value of the property is fine, the lender may determine the property is not an acceptable risk for them. For this reason they may decline to fund the property. By not handing over the valuation they can simply state that the valuation is not acceptable, rather than having to give a full explaination of their policies and why, and potentially open themselves to a liability they don't want.
The notable exception is the ANZ (if you go through a broker, the broker manages the valuation process, thus receiving a copy). Quite a few mortgage managers will also hand over a copy of the val, but none of the other major banks will.
As stated, lenders order valuations for their own due dilligence on the property, not yours
They'd probably agree that in most cases it doesn't hurt their interests to allow you to have a copy, but occassionally it might not be to their benefit. As a result they simply make it a policy not to give them out.A valuation not only gives a price estimate, but it includes a risk analysis. Even if the value of the property is fine, the lender may determine the property is not an acceptable risk for them. For this reason they may decline to fund the property. By not handing over the valuation they can simply state that the valuation is not acceptable, rather than having to give a full explaination of their policies and why, and potentially open themselves to a liability they don't want.
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As stated, lenders order valuations for their own due dilligence on the property, not yours
If the banks/lenders order the valuation for their own due diligence then shouldn't they have to pay for it? No, the lenders passes on the cost of the valuation + a hefty mark up to the client. So why shouldn't the client get a copy for their records. A fully written valuation contains lots of useful information apart from just the property value, allot of which could be useful to the client, not just the lender.
Are you talking about on a sales contract or offer to buy? If so then it means you are offering to buy but only if finance is approved to buy the property and has nothing to do with valuations etc. One does need to be careful as it is best to nominate who the finance has to be approved by, for example CBA at current % rate etc. There have been situations were finance has been approved but at a rate different to what the person was wanting or asking for other properties to be crossed.
As a buyer myself I agree with you on the disclosure of valuations, but the banks do pay for it. They then pass those costs on to the customer as application fees. Many people would be surprised at the amount of resources that go into the assessment of a home loan application.
If the customer has paid for the valuation within the application fee then I think the bank should attach a copy of the valuation to the loan contract. This would allow the customer full knowledge of what value the banks have put on a property as without this, they are accepting a loan contract without knowing the figure. Otherwise the only way the customer would know if the banks valuation had come in lower than what the customer has paid if they had to top up to their agreed borrowed amount or their LVR. I think this comes into even more effect when you are obtaining valuations on several properties to obtain finance on one. I thinks it would be good information to the customer to know the values of all properties.
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