Valuation before or after underwriting

learningaboutmoney3

There has been a bit of discussion around this on the waiting for a mortgage offer thread so I thought it might be an idea to start a separate thread where we could list lender and process.

I'm with precise and it looks like it's underwritten before valuation.

Thrugelmir

No lender will issue an offer prior to valuation. Only when a formal offer is made is the application fully underwritten.

laurieballard999

It would make little sense to underwrite before valuation.

The valuation is charged for, therefore is not a cost as such to the lender so it would make sense to get that done first to recoup some money.

If the underwriting was done before the valuation then some applications could earn zero money if it's turned down before the valuation. Having the valuation done first means they get money regardless, even for the ones which are turned down at underwriting.

pinkteapot

Santander do the underwriting first, then valuation if you pass. We applied in November 2013 and this was certainly the process then.

By "underwriting", I mean someone checking the application and our credit reports, and deciding whether or not Santander were happy to lend that amount to us, subject to a valuation. Essentially, they passed us first and then the house. We were only charged for the valuation once we were approved by the underwriters.

The mortgage offer was then issued after the valuation had been done.

We did apply via a broker. I'm not sure if that makes a difference to the process.

Here's my reply to a thread about Santander timescales back in November, outlining ours:
http://forums.moneysavingexpert.com/showpost.php?p=63919700&postcount=7

kingstreet

To be honest, every case will be pretty much checked and acceptable before the valuation is done.

Even if the valuation is instructed immediately, it still takes a few days to get the appointment done and the report back. The case can be readied during that period.

Wasting time queueing cases, obtaining documents and approving the case before instructing the valuation is a PITA for us where we have a 28 day exchange of contracts target. I guess it's understandable though, when it's mainly done by the lenders who pay for the valuation (Abbey, Leeds etc).

learningaboutmoney3

Valuation has now been instructed and booked for Monday!

And pink teapot that was exactly what I meant! Thank you

And Kingstreet that is good to know really

laurieballard999

kingstreet wrote: »

To be honest, every case will be pretty much checked and acceptable before the valuation is done.

Even if the valuation is instructed immediately, it still takes a few days to get the appointment done and the report back. The case can be readied during that period.

Wasting time queueing cases, obtaining documents and approving the case before instructing the valuation is a PITA for us where we have a 28 day exchange of contracts target. I guess it's understandable though, when it's mainly done by the lenders who pay for the valuation (Abbey, Leeds etc).

I would counter that with our current experience with Halifax

Mortgage applied for on the Wednesday 10th Sept and valuation instructed straight away. Valuation takes place on Friday 12th.

The following week they initially asked for 3 months payslips.
2 days later they wanted proof of deposit
3 days later they now want proof of gifted deposit, they actually want to see the funds in my partners dads account and also the funds in our account after transfer.
Its over 2 weeks since the application and I suspect they are going to want to see more after this.

Its not always decision then valuation, it certainly hasn't been for us!