Upfront valuations prior to submitting deal

Hi guys,

Just wondering do you usually order the valuation upfront before submitting the deals to the lenders these days ?

A mate of mine who works at a banks a home finance manager usually does it after which I think is risky especially if lvr position is tight.

Do you guys choose the lender or leave it to the borrower when providing your recommendation.

Interest to hear your thoughts.

 

If the deal involves a refinance, or it's an iffy purchase (like otp for instance) I may order multiple vals upfront and then choose the lender.
Upfront vals are great, why do you think they are risky?

 

It depends on the deal but yes - very common (and prudent) to do so.

Cheers

Jamie

 

Thanks guys meant risky not doing it.

 

Depending on which bank they work for they may not be able to even order one without an application in the system, unless there's a very good reason.
Mine works this way for it's home loan staff.
Doesn't make sense when a deal hinges on an amount but the people who earn more money higher up the chain make the rules

 

If upfront valuations are available, we always order them prior to submitting the application. Totally selfish reason, I don't want to do a few hours of paperwork without knowing if the valuation is going to be okay or not.

It also reduces the amount of credit hits for a client and there is clear benefit in knowing what the equity position is; it helps plan the next steps.

Upfront valuations are an incredibly useful tool. If a lender doesn't offer them, they're doing themselves a huge disservice.

 

Or offers them only to brokers who write a lot of business with them....

chicken and egg stuff really, I'm not going to write loads of business if you don't let me order vals upfront, policy, rate etc being equal.