What happens now? Valuation under asking price....

Wales2020

Application submitted with Nationwide. Valuation has come in below asking price...

I know the options are renegotiate price, pay the extra ourselves or walk away however, what happens with actual mortgage offer?? 

Will NW still issue mortgage offer based on 90% of their valuation or do they just decline???

Broker says all other checks have been ok ...

thanks for any help! 

dunstonh

I know the options are renegotiate price, pay the extra ourselves or walk away however, what happens with actual mortgage offer?? 

The offer letter will either be adjusted or withdrawn depending on what happens.

Will NW still issue mortgage offer based on 90% of their valuation or do they just decline???

If you make up the difference or the lower price is agreed, then its 90% of the valuation.

This bit you really don't need to worry about.   Playing poker with the estate agent vendor is the only bit you need to worry about.

Wales2020

dunstonh said:

I know the options are renegotiate price, pay the extra ourselves or walk away however, what happens with actual mortgage offer?? 

The offer letter will either be adjusted or withdrawn depending on what happens.

Will NW still issue mortgage offer based on 90% of their valuation or do they just decline???

If you make up the difference or the lower price is agreed, then its 90% of the valuation.

This bit you really don't need to worry about.   Playing poker with the estate agent vendor is the only bit you need to worry about.

Thanks for your reply. It’s a private sale so we’ll be going direct to Vendor... really nervous about that bit!!!! 

gboy25

Good luck! Did the value it down a lot if you dont mind me asking? 

Wales2020

gboy25 said:

Good luck! Did the value it down a lot if you dont mind me asking? 

Well funny you should ask that... all we know at present is that it didnt meet asking price we have NO CLUE what the actual valuation was... so broker has said we have to wait for the offer to know for sure? Not even sure that’s right to be honest but as FTB i have no clue whatsoever. 

She did say we had passed underwriting and that the offer would be a reflection of the revised valuation.... whatever that may be... so we anxiously wait before we can even renegotiate with the vendor... seems a bit all over the place if you ask me.... 

gboy25

Wales2020 said:

gboy25 said:

Good luck! Did the value it down a lot if you dont mind me asking? 

Well funny you should ask that... all we know at present is that it didnt meet asking price we have NO CLUE what the actual valuation was... so broker has said we have to wait for the offer to know for sure? Not even sure that’s right to be honest but as FTB i have no clue whatsoever. 

She did say we had passed underwriting and that the offer would be a reflection of the revised valuation.... whatever that may be... so we anxiously wait before we can even renegotiate with the vendor... seems a bit all over the place if you ask me.... 

Eeeh why is everything so complicated! I think I'll be a FTB and only time buyer at this rate 😂 
Theres obviously some sort of spell you need to cast to be in with a chance of understanding and knowing everything that's going on!
Hope it all goes well though!  🤞