The valuation
When we request a mortgage loan, one of the conditions that the banking institution requires of us to grant it is a valuation of the property. Let us look at what it consists of.
Necessary and unavoidable. This is how we could define the long and anguishing process of valuation for a buyer. Many people request a mortgage without knowing what a valuation is and what it costs. So it is always a good idea to make it clear to avoid surprises... or upset.
What es
On request of a mortgage loan, when studying the amount to finance, banks normally establish as one of the principal limits on said loan that it does not exceed a certain percentage of the valuation price of the property (generally, 80 or 85 percent); Not to forget that today there are banks that finance up 100 percent of the valuation.
Although this may sound strange and confusing, the valuation is nothing more than a qualified study of the value of, in this case, a home through comparison with others in the same area and of the same type.
Who does it
A specialist company, normally designated by the banking institution that is processing the loan, will be entrusted with carrying out the valuation.
A professional belonging to this company will visit the property to verify the data offered in the documentation received and make their own report, which will be legally valid.
The result of the valuation is reflected in an official certificate that will determine whether the loan process goes ahead or not. Whether the loan is granted or not, the buyer should have a copy of this certificate.
How much does it cost
Because today everything has to be paid for and because sometimes more than one valuation has to be made, it should be kept in mind what this will cost us. Normally the cost ranges between 90 and 240 Euros, although it depends on the property.
The appraisal, something else
If the buyer should be clear about one thing when requesting a loan it is that a valuation is not the same thing as an appraisal. In first place, an appraisal is not legally valid before any institution. Moreover, the valuation includes a visual inspection of the casa through the figure of a surveyor, a process not included in an appraisal.