If you are purchasing a new home or a business, there are a lot of things that need to be considered. It’s a big investment, and one that you want to enter into with as much information as possible. There are several things that you can do to make sure that you are as knowledgeable as possible about the property you are interested in buying, including a land survey and an inspection of the property. A mortgage valuation survey is another tool that can educate you about your prospective purchase before you enter into a contract.
What is a Mortgage Valuation Survey?
If you are planning on taking out a mortgage to purchase a piece of property, a mortgage valuation survey can be extremely beneficial. A valuation is a survey tool, and it can provide you with a rough estimate of whether the property you are interested in buying is set too high. These surveys examine the property to assess how much it is worth. They also note any significant work that the property may require, and whether or not the work would impact the value of the property.
During a mortgage valuation, a brief inspection of the property will be conducted. The information compiled during this inspection is given to the lender, usually via online survey software. The lender then uses this information to determine if the amount requested for the mortgage is acceptable, or if it’s too high.
Most Lenders Require Valuation Surveys
The majority of mortgage lenders require valuation surveys before they will approve a mortgage. The lender will likely select the company that will conduct the survey, and they may help you by covering part of the cost of the survey.
They’re for the Lender
Mortgage valuation surveys are for lenders, not buyers. They provide the lender with enough information to determine if the property is safe to lend on.
They Aren’t Detailed
Since mortgage valuations are very brief, they aren’t very detailed. If you want to have a more in-depth understanding of your property, such as a detailed inspection of the heating system, you should a through property inspection conducted. These inspections examine every detail of the property, including the heating system, the pipes, the roof, and all other pertinent areas of the property. The information collected from these inspections will be shared by the inspector via online survey software, and can be used to help you, and your lender, determine if extensive work needs to be performed, and if the property is worth the price that it is being sold for.
While valuation surveys are useful to lenders, if you are buying a property - perhaps a school, for example - and you would like to have detailed information, a more in-depth report, such as a school survey, would be in your best interest, so that you can ensure that you know all of the pertinent details that pertain to your impending purchase.