How long pepper takes now?

Discussion in 'Loans & Mortgage Brokers' started by codeninja, 6th Nov, 2017.

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  1. codeninja

    codeninja Well-Known Member

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    Valuation co asked for proof from valuations done by other banks. My broker drafted a brief summary about the comparable sales. I still feel The valuation company can consider other valuations and come up with better valuation
     
  2. bread_boy

    bread_boy Well-Known Member

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    Goodluck, hope it all works out.
    That's the tough thing about buying site with dev potential; valuer will never take that into account.
    Although from the sounds of it you have bought at a reasonable price in line with recent sales so tough break.
    Fingers crossed your broker's summary gains some traction.
     
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  3. codeninja

    codeninja Well-Known Member

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    Absolutely, Commbank considered all the recent properties with STCA possibilities. So they could valuate to the purchase price.

    But valuations company chosen by pepper didn't consider. I can only hope they can consider the sales after July 31st thats when the suburb median price increased to a greater extend.
     
  4. bread_boy

    bread_boy Well-Known Member

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    I'm surprised by this as my understanding is they will not consider STCA characteristics at all.
    To my understanding, valuers will only compare like for like in regards to land size, number of rooms, bathrooms, etc.

    However, no complaints if I'm wrong ;)
     
  5. codeninja

    codeninja Well-Known Member

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    Now today we have sent both the valuations(both are valuated for 550k) from banks to the new peppers valuation. Waiting for the response.


    There are plenty of comparable sales around 550 irrespective of STCA
     
  6. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I've had a couple of instances in the last 12 months where valuations included comments on the 'best and highest possible use of the site'. It didn't affect the immediate value of the property, but these comments created hell with the banks policy people.

    Example:
    4br house, purchased for $700k. Property is in a designated growth zone.
    Instead of the usual 6 page short form valuation, valuer does a 28 page full valuation report report, values at $700k but notes the best and highest use of the property is a 6 unit development. It appears the valuer made the decision to upgrade the report, presumably so they can charge the bank 5 times more.
    Despite the valuation confirming current use of the site is a 4br house and the current value is the same as the purchase price, the bank decided the valuation was unacceptable because 6 units is outside their residential policy. Loan declined. WTF !!!

    I don't think that's what's occurred here. A couple of possibilities:
    * The valuer is ultra conservative.
    * The purchaser paid too much.
    * The lender looked at the application, despite it meeting policy, they didn't like it. They then instructed the valuer to be ultra conservative to give them a reason to either get more security or to outright reject the application. It happens.
     
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  7. codeninja

    codeninja Well-Known Member

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    Valuation guy asks for other valuations to refer to.
    banks asked for other banks valuation to.
    We have submitted to the bank and valuation company.

    Now at this stage, I don't know what will be the outcome is. Still finding a small window for reconsideration from valuation company and if fails expecting bank to issue another valuation request.
     
  8. jins13

    jins13 Well-Known Member

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    Maybe with the hurdles you are unfortunately going through, maybe I could beat you to the finish line. I've recently had a completed valuation completed and in the process of the consolidated documents going through by my broker.
     
  9. thu555

    thu555 Well-Known Member

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    I am going through an unconditional approval with Pepper. Originally I applied directly through with Pepper and received a conditional approval within 1 week. They gave me a rate of 5.78%. Then I went to my usual broker and he said he can get me @ a rate of 4.78%, so of course, I went through him. Submitted the contract of sale for an unconditional. The valuation was ordered 10/11/2017 which they advised ETA is 3 business days. Today is 15/11/2017 and still no valuation report. However, I am buying in QLD, so I asked for a long finance & long settlement. Let me know how you go CodeName47.
     
  10. dabbler

    dabbler Well-Known Member

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    I have used top tier, mid and low end lenders.

    I have noticed in last 2 years the low end lenders, while far more generous in terms of servicing, that they often cut back LVR even if val easily covers.

    So, better to use one higher IMO even if they will lend less.

    I almost know what these people are thinking at meetings that drive policy, they are not reckless lenders, but the small ones may be quicker to shrug the shoulders if you get in trouble and they smashing you with fees.

    I used to take the view of helping the small guys, but you need to look closely now the market has changed. TBH Mid has always served well.
     
  11. youfoundtheplot

    youfoundtheplot Active Member

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    On the same boat as you....

    Pepper wanted to value my new purchase as a commercial!!

    Had to get a valuation done by CBA and take it back to pepper and now they are getting a valuation done again...

    Such a waste of time
     
  12. dabbler

    dabbler Well-Known Member

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    Will be interested if you get any change.
     
  13. codeninja

    codeninja Well-Known Member

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    Sorry for the very late reply.

    Finally Nab approved my loan in ultra speed and settled the next working day. Just moved to the house yesterday.
    Still unpacking
     
  14. youfoundtheplot

    youfoundtheplot Active Member

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    What made you go with pepper instead of NAB?
     
  15. dabbler

    dabbler Well-Known Member

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    What happened to Pepper ?

    And at least it is done now :)
     
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  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Nab retail have a magic wand :) ( as do others)

    I have seen 5000 negative surplus just go ...........................pixie dust away

    ta
    rolf
     
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  17. codeninja

    codeninja Well-Known Member

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    My settlement was with in a week and they Couldnt make a decision for 90%. so tried pepper to get the loan approved faster.

    Since settlement is in few days time and I decided to go for 20% deposit. Now I need to live with the house that needs heavy renovations but cant do it now because I dont have anything left in my bank.
     
  18. codeninja

    codeninja Well-Known Member

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    The valuation company didn't revise the valuation.
     
  19. The Y-man

    The Y-man Moderator Staff Member

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    Hey well at least you had the fall back position to settle. Much worse if you didn't have the extra 10%

    The Y-man
     
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  20. codeninja

    codeninja Well-Known Member

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    I cant imagine loosing my deposit if that happens.