Recent client purchased a property off the plan. We got a pre-approval prior to the building completion when the contract was approved subject to the property valuation. Once the building was complete we moved forward with the valuation.
The value came in under the contract price and the report had a few red flags that would hold up the loan with Mortgage Insurance. We decided to try a different lender and new valuation. This time the valuation came in too short again but the report did not include any comments that would be considered red flags. We then tried for a third lender and valuer. This time the valuation came in on the mark. We lodged the loan on Thursday afternoon and had approval on Monday.
The difference in valuations has been a common issue this year. At ZEP Finance we strongly recommend that where possible we order up front valuations. This way we can see the property value before submitting the loan. This will avoid any hits on your credit file in case the valuation comes in short.