How do Bank valuations work?

Discussion in 'Loans & Mortgage Brokers' started by Serena96, 2nd Aug, 2020.

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  1. Serena96

    Serena96 New Member

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    Hello,
    We are in the process of applying for finance approval. We are building a new home on land that is registered. We have been pre approved for $510k we have a $170k deposit to add to the $510k and total cost for land and build is $677k ( land $248k build $409k) My question is, With the bank valuation does it just have to come in atleast $510k which is what we are borrowing?
     
  2. Propertunity

    Propertunity Well-Known Member

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    No. If that were the case then you’d have a 100%LVR loan, which the banks won’t give you.

    if you’re borrowing the max the bank will lend to you then you need the Val to come back at $677K or close to.
     
  3. Serena96

    Serena96 New Member

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    Thank you for your reply, just to clarify as long as the valuation comes in at an amount greater than borrowed amount it then would meet requirement for approval?
     
  4. Propertunity

    Propertunity Well-Known Member

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    No.
    if you’re borrowing the max the bank will lend to you then you need the Val to come back at $677K or close to.
     
  5. Serena96

    Serena96 New Member

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    Oh right ok thank you.