Does HSBC do the valuation survey after they have agreed the mortgage?

Counting_Pennies_2

I wonder if you can confirm something for me?

We have been waiting and waiting for our buyers to have their mortgage valuation survey.

They have now said that they have their valuation survey after HSBC have agreed to the mortgage.

It all sounds like a stalling tactic to me. Does anyone know if this is correct.

My understanding is they don't agree to the mortgage until they have been to the property to value it.

They have been given a month to proceed to exchange, and I feel they are spinning me a yarn.

Thanks

Thrugelmir

How long ago was the offer made on your property?

Senior_Paper_Monitor

Pretty much the same for all lendors ....

1) Apply Decision in Principal (DIP)

2) Receive DIP response (immediate or possibly 5 working days or more if 'referred' or paper process, the latter does not apply to HSBC)

NOTE - A DIP is not an offer a promise or a mortgage - it is indicative only

3) Complete full application and support documentation

4a) Respond on underwriting queries

4b) Valuation

NOTE 4a and 4b can be in either order (can't speak for HSBC)

5) Final underwriting checks

6) Offer issued

My guess is your client has a DIP and is now going through the application process.

Bear in mind that only a fool would exchange without an offer in place (and only a foolish conveyancer will permit a client to do so) in normal circumstances. It is arguably irresponsible to commence the due diligence work towards exchange before funding is ensured - 28 days to exchange is tight deadline for anything other than a standard case.

We have just processed one through DIP, docs, app, valuation, offer in 7 days and are now waiting for the vendors solicitor to provide his docs !

nancyo

I am in the middle of obtaining a mortgage with HSBC, they sent out our mortgage offer in the post and we are to sign and return, this is subject the survey, which they are organising.