Who Values a House for a Mortgage?

When applying for a mortgage, your lender will need to arrange for a valuation. This is in order to confirm that the offer you have made on the property reflects its fair market value.

But who values a property for a mortgage and how does it work? Is it different from a regular house survey or valuation? How long does the overall process take, and what is involved? Finally, who values a house for a mortgage?

In this article, the team at Property Solvers – specialists in the provision of quick homebuying services (and experienced home valuers) – answer all of these questions and more.

Who Values a House for Mortgage?

Lenders employ specialist mortgage surveyors to value property. They tend to use the same approved firms or specialists for all of their valuations.

Of course, you are also able to arrange as many independent surveys as you require – and you can choose to approach a different lender if required.

Depending on the type of property and the complexity of the sale, your lender may approve you for a mortgage in anywhere from 24 hours to two weeks.

If the valuation goes smoothly, and the surveyor finds that your agreed sale price is either correct or slightly higher than the property’s value, this part of the process can be over very quickly.

What is a Mortgage Valuation?

Simply put, a valuation is a property value check – a way of determining the fair market value of a home.

You may choose to get a property valuation for a range of reasons. A seller may arrange one to help them decide on a suitable asking price. A buyer may request one in order to ensure that the offer they are about to make is reasonable. It’s also possible for a homeowner to book one purely out of curiosity about their property’s current value, or to help them remortgage.

Homeowners and buyers may decide to get multiple property valuations done in order to get the clearest possible idea of a property’s value.

Banks, building societies and other lenders regularly arrange house valuations for mortgage purposes. This way, they can double check the suitability of a client’s offer and the requested mortgage amount.

What is Involved in a Mortgage Valuation Survey?

When a surveyor undertakes a mortgage valuation survey, what do they look for?

The required checks usually take less than an hour, depending on the size and complexity of the site. The surveyor examines the property for any potential problems. These may include structural issues in particular, as well as the presence of damp, asbestos and other obvious concerns.

They’ll also briefly check that the description of the property provided by the seller’s estate agent is correct.

After leaving the property, they will then check the values of similar local houses by researching recent sales prices in the area. They may also gauge the level of demand for property in the neighbourhood. They’ll also take the state of the national property market into account.

Usually, surveys of this kind are fairly cursory and do not go into the same level of detail as a full house survey.

So how long after the valuation should you expect to receive a mortgage offer? Unless there are any major holdups, you should hear back within a single week.

Possible Outcomes

Often, the surveyor agrees with the offer made by the buyer, and the mortgage offer can be made with no revisions.

But what happens if the mortgage valuation is higher or lower than the offer?

If the surveyor finds that the property’s value is higher than the amount you have offered, they will still usually cite the agreed sale price for the purposes of the mortgage. However, if it is lower, the lender may “down-value” the property – which means reducing the amount they offer you.

In cases of this kind, it may be possible to renegotiate your offer with the seller. Alternatively, you could pay a larger deposit on the mortgage if you have the funds available. Another option is to apply for a loan to cover the difference. Finally, you could apply to another lender, who will send a different surveyor who will hopefully come back with a different opinion.

Thinking of Selling Up?

If you’re looking for a quick and easy home buying or selling experience, contact Property Solvers today. We can make an up front, no obligation cash offer for your property worth up to 75% of its market value. We’ll then close the sale in as few as 7 days. You won’t have any estate agency or solicitor fees to pay.

We also offer an excellent estate agency and auction services, where we’ll find you the very best buyers in just 21 days. There are no tie-in contracts, and we work on a no sale, no fee basis.

Contact us today for information and advice.