Saving/Applying for a mortgage 2015/16/17/18/19

heebusjeebus

You have to pay for BoI and PTSB too.

yaboya1

heebusjeebus wrote: »

You have to pay for BoI and PTSB too.

Never heard of any case that the Bank PAID.

0gac3yjefb5sv7

May be a stupid question...but how do they value the house? Is it just the building cost I assume vs the actual location etc

heebusjeebus

Pheonix10 wrote: »

May be a stupid question...but how do they value the house? Is it just the building cost I assume vs the actual location etc

They would usually check the house and then compare it with similar house price sale prices from the last 6 months.

0gac3yjefb5sv7

heebusjeebus wrote: »

They would usually check the house and then compare it with similar house price sale prices from the last 6 months.

Thanks and if it varies from the sale price do they do anything?

heebusjeebus

Pheonix10 wrote: »

Thanks and if it varies from the sale price do they do anything?

That I don't know. I'm going through a valuation at the moment so I'll update you when I get through the process.

Graham

Pheonix10 wrote: »

May be a stupid question...but how do they value the house? Is it just the building cost I assume vs the actual location etc

It's the value the house would be expected to achieve on the open market.

Pheonix10 wrote: »

Thanks and if it varies from the sale price do they do anything?

If the valuation is lower than the price you've agreed, it is likely any mortgage offer would be based on their valuation. i.e. they would loan you less money.

It doesn't happen all that often.

tobottherobot

yaboya1 wrote: »

Never heard of any case that the Bank PAID.

BOI paid for mine back in March. I was mortgage approved with another bank at the time so maybe that had something to do with it

0gac3yjefb5sv7

Graham wrote: »

It's the value the house would be expected to achieve on the open market.



If the valuation is lower than the price you've agreed, it is likely any mortgage offer would be based on their valuation. i.e. they would loan you less money.

It doesn't happen all that often.

Thanks for that. What do they mean by an open market?

Is that not how it got to the current price that I went sale agreed at?

It is useful information for me also to know if the property is very over/under valued?

pnecilcaser

If the bank said they would pay for it go back and ask them about it.

I recently applied for a mortgage switch with Ulsterbank, they said they would pay for the valuation and they did. When the guy came to do it, he was in the house for no more than 3 minutes. He walked from one room to the next and poked his head through each door. I had to request a copy of the valuation from them THREE times before they sent it to me. The valuation contained a form that detailed the value of the house and the details of three "similar" properties in the area. All the exact same information was available on the property price register. https://www.propertypriceregister.ie

Around the same time, I emailed all estate agents in the local area and asked for the price of a valuation. Every single one quoted €150.

For the brief few moments he was in my house, I asked they guy that the bank paid for how it could cost so much? His rather flippant response was "ah it should be more and you have to go to college". Kind of disgusting, so I was glad I didn't have to pay for it.

wally79

Pheonix10 wrote: »

Thanks for that. What do they mean by an open market?

Is that not how it got to the current price that I went sale agreed at?

It is useful information for me also to know if the property is very over/under valued?

The bank send a valuer to inspect or get you to. You pay regardless

They assign a value say 100k usually by checking it matches the description and then pulling 3 comparable properties that were sold recently

The bank will only loan you 90% of 100k (for ftb)

Doesn’t matter if you bid up to 500k on it

Graham

Pheonix10 wrote: »

What do they mean by an open market?

Is that not how it got to the current price that I went sale agreed at?

I assume that's how you got to your sale agreed price.

Consider what would happen if you phoned the agent in the morning and said you'd like to increase your offer by €150k. Would that still be a reasonable market value, would the property sell to anyone else in the current market for the new increased amount?

Dolbhad

Ulster Bank paid for our valuation for new build but it depends on the bank. In Cork people I knew paid €130 and valuation is only valid for 4 months

Natashaw88x

We paid €150 for our valuation recently on a new build. We’re with PTSB. Will need another one before drawdown as the house was at foundation level for the 1st valuation. It’s €70/75 next time. I didn’t see the issue, it was said to us from the start and is a condition of full loan offer.

el Fenomeno

Any bank that pays, does so as one of their incentives. If they pay, they'll usually advertise the fact.

charlietheminxx

When should you get the bank valuation done on a new build? Is it at snagging stage?

Phileas Frog

charlietheminxx wrote: »

When should you get the bank valuation done on a new build? Is it at snagging stage?

Before you sign contracts.

charlietheminxx

Phileas Frog wrote: »

Before you sign contracts.

Contracts are already signed but we bought on launch weekend based on the showhouse (ours was about half-built). Construction is well onnow and we should be snagging in the Autumn, but it's still a building site and the surveyor won't get near the house itself. Surely they can't value an incomplete house

padz

charlietheminxx wrote: »

Contracts are already signed but we bought on launch weekend based on the showhouse (ours was about half-built). Construction is well onnow and we should be snagging in the Autumn, but it's still a building site and the surveyor won't get near the house itself. Surely they can't value an incomplete house

Interesting enough I'm doing a bit of digging into mortgage fraud, appraisal fraud... A lot of what I've been hearing here is not right, a valuer shouldn't be paid or supplied by the mortgage provider, classic conflict of interest, also valuation on a property yet unbuilt is crazy, who knows could even be built on a flood plain but you​ wouldn't know until next winter..
Definitely a lot of dodgy goings on with valuation, once you sign the contract it's your Bill for the next 25-30 years

mur223

charlietheminxx wrote: »

Contracts are already signed but we bought on launch weekend based on the showhouse (ours was about half-built). Construction is well onnow and we should be snagging in the Autumn, but it's still a building site and the surveyor won't get near the house itself. Surely they can't value an incomplete house

If the house is incomplete and the valuer has no access to the site, they value the house as it is at initially, they take into consideration other similar sized properties in the area & the drawings etc, then before drawdown another valuation will be needed. Which wont cost as much as the first valuation.

awec

In a new build the valuation is done at the very end, before draw down. They can't properly value something that doesn't exist.

Wait until after the first snag, so you at least know the house is complete and there are no major issues that need rectified.

Natashaw88x

We bought a new build and you need two valuations done. The first our house was only at foundation level, the bank wouldn’t issue full loan offer without. The final one will be done before drawdown. This was with PTSB. We bought a new build in millers glen and the person doing the valuation basically rang sherry fitz and asked what other similar houses went for, plot size etc.

awec

I guess it varies from bank to bank then. We're with AIB and only 1 valuation, at the very end.

Creamy Goodness

awec wrote: »

I guess it varies from bank to bank then. We're with AIB and only 1 valuation, at the very end.

Same. New build as well. Makes no sense to do two valuations unless maybe if there were a few phases already complete so there would be some reference. I bought first phase and valuation was done when we were called to snag.

charlietheminxx

It's interesting to see all the different answers. I've bought in Miller's Glen as well, one of the new Meadowbank Houses but I'm with AIB and they issued the full loan offer etc. already... so I guess I should hold off for a while?

Edit: we were only told we would need one valuation done, and that it must be less than 4 months before drawdown, I just wasn't sure at what stage.

awec

charlietheminxx wrote: »

It's interesting to see all the different answers. I've bought in Miller's Glen as well, one of the new Meadowbank Houses but I'm with AIB and they issued the full loan offer etc. already... so I guess I should hold off for a while?

They'll tell you to do it when they need you to do it. It will be when you start to close.

It'll cost €150 and be valid for 4 months.

Natashaw88x

charlietheminxx wrote: »

It's interesting to see all the different answers. I've bought in Miller's Glen as well, one of the new Meadowbank Houses but I'm with AIB and they issued the full loan offer etc. already... so I guess I should hold off for a while?

Edit: we were only told we would need one valuation done, and that it must be less than 4 months before drawdown, I just wasn't sure at what stage.

We have bought in Meadowbank too. Permanent tsb had it as a condition of offering full loan offer. My friend went with haven and she also needed 2 valuations. If you don’t need it done for awhile I wouldn’t bother. It takes all off 2 days to sort

Phileas Frog

awec wrote: »

In a new build the valuation is done at the very end, before draw down. They can't properly value something that doesn't exist.

Wait until after the first snag, so you at least know the house is complete and there are no major issues that need rectified.

Certain banks also require a valuation prior to loan approval, which happens before you sign contracts. They require another one after X months.

lilywhitearmy

Just done second valuation on new build. Snagging next week. What's the timeline from snagging to closing? Getting a bit close for comfort with our loan offer expiry.

awec

lilywhitearmy wrote: »

Just done second valuation on new build. Snagging next week. What's the timeline from snagging to closing? Getting a bit close for comfort with our loan offer expiry.

If there are no big issues in the snag and all the legal and money stuff goes to plan it could be as little as 2 weeks.