For a Home mortgage application undergoes a number of processes, checks, counter checks, evaluations and appraisals. Valuation of property is one important step prior to provision of mortgage. However, other factors like income stability, age of the borrower, his or her previous credit history and records also have a bearing on the loan amount. Banking institutions offering loans and receiving mortgages application from customers will still look beyond their ability to pay. The quantum of loan offered; its tenor, the interest cost and other such important factors will determine to a large extent on the value of the property in addition to other parameters. Valuation of property will remain is crucial to lenders, as in the bank and the financial institutions and prospective borrowers both.
Banks protect themselves before providing for mortgages by performing valuation of the asset the customer wants to own in case of the customer who buys and then defaults on their loan. For the process, they typically hire an expert independent valuator or a company for undertaking the procedures. It requires a licensed professional. If specialized in various avenues of services means an added brownie point goes to them. And if registered with the Australian Property Institute, it means the valuation report comes with high endorsement worthy to trusted blindfold. Extensive knowledge of various aspects is a prerequisite. Report generated show crucial information pertaining to the quality of the construction, details about the locality of the property and other such information.
Customers too procure these services in addition to lending institutions. Either the report hinders or helps the customers’ in getting the right amount of mortgage loan. The property value and the loan amount are equally proportionate. The onus to decide on the accuracy and result of the process rests on the customer’s choice of his/her own valuer. An added advantage of hiring a personalized professional valuer is also to have a report to counter the one generated by the bank as a blessing to remove hindrance in the procuring loan. Hence, a role of a valuator is crucial and useful to both the Bank and also the customers as well.