Browse Forums Home Finance Re: Valuation shortfall Construction Loan 2Mar 12, 2019 12:15 pm Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation shortfall Construction Loan 4Mar 12, 2019 12:47 pm Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation shortfall Construction Loan 7Mar 14, 2019 10:39 am Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation shortfall Construction Loan 9Mar 14, 2019 10:48 am Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation shortfall Construction Loan 18Jun 12, 2019 9:19 pm Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation shortfall Construction Loan 20Jun 12, 2019 9:55 pm becjarrettdalton raptor19 Hi, im in a situation on applying for house construction loan and the bank valued my land 20k lower than the purchase price compared to the valuation amount 3 months ago which is the same as purchase price. Since the bank used a different valuer which i guess the reason why the report came back differently. My question is since i am currently under mortgage with this bank, can i get another lender to finance my construction and having the same valuation for the land since i cant shell out 20k to cover the shortfall? Fyi, that i only put 10% deposit on land and planning to do the same for construction. Thanks in advance Rex Rex, you can but be mindful the bank has the final word and the valuers don’t like being challenged. And ultimately the banks won’t use a valuation from a valuer who isn’t on their panel - and if you have to change banks you’ll pay mortgage insurance again. Valuations are based on comparable settled sales in the last 3 months of like properties (similar land size, same number of bedrooms, bathrooms, garages etc) in your suburb. If other settled sales match the value then you may be stuck. What I would recommend is challenging the valuation with your current lender first by gathering comparable sales of like properties - even recent land sales if you settled on the land recently & see if they support the higher value. Failing this you can try other bank valuers and do the same. And worst case switch banks with New LMI / Thanks becjarrettdalton...I am thinking of lmi if i need to mind that if i switch lenders since i only pay 10% of total...ill check with any recent sales in my area for comparable sales The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19114 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35332 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11934 |