Going forward with the valuation ...

Ftba.d

If the lender goes forward with the valuation , does this indicate they are happy with the credit checks , affordability etc?

Thanks in advance .

lee111s

Not always. Underwriter usually does the checks after valuation.

Ftba.d

Ah I see. So if all falls through I imagine the valuation fee won't be refunded ?

Thrugelmir

Valuation is conducted by third party. Hence why the cost is paid upfront. At the applicants risk.

Ftba.d

Thanks Thrug.

So the lender does not hold off from instructing the valuation to go ahead before checking if it's worth the effort or not. Doesn't seem to make sense for all parties involved to not just hold back and check the other paperwork to see if it looks as though the mortgage will be agreed before instructing a valuation to take place ...

lee111s

Ftba.d wrote: »

Thanks Thrug.

So the lender does not hold off from instructing the valuation to go ahead before checking if it's worth the effort or not. Doesn't seem to make sense for all parties involved to not just hold back and check the other paperwork to see if it looks as though the mortgage will be agreed before instructing a valuation to take place ...

But they'd be wasting their time checking documents, credit files etc if the valuation comes back lower than what the offer price was...

chelseablue

We had to pay £750 upfront for the survey/valuation.


Halifax said if the mortgage was then declined we would not receive that money back

Cardinal-Red

Guess it's bank dependent.

I'm with HSBC and just gone through the underwriting process. It was only when that was complete that they instructed their own surveyor to visit the property. In idle chat with one of their advisors on the phone, she said it's because there is no point in getting the survey done if they'd never lend in the first place.

You are of course free to instruct your own at any time - the EA wouldn't remove the house from the market until a surveyor was appointed so we almost did this, but luckily the HSBC process moved forwards quite quickly.

Ftba.d

Thanks for all your above responses .

I think you're right and that its bank dependent.

My application went in late Thursday and valuation was arranged on the Monday along with asking my broker for most recent payslip. I don't think the underwriting process could've happened that quickly before the valuation instruction early Monday morning . Also, they still required the payslip which means checks were not complete. Only merely surmising of course!!!

Fingers crossed that if it does fall through, I'll get some of the money back !

Jox

I'm with HSBC and the valuation was free but I opted for a full survey at the same time and paid £550 to the surveyors (appointed by HSBC). HSBC received the valuation 24 hours after it took place (it still needs to be approved by the underwriters) and I am due to receive the survey report a week after it took place.