You are about to buy a house. You search for the conditions of the most advantageous mortgage loan. Many banks will request an estimate of your house with your credit file. Why do banks ask this and how much is the cost of such an estimate?
Is the purchase price of your house not at the same time the value of your house?
You are considering buying a house. The seller sets a selling price that may or may not match the real value of the property. In any case, many sellers try to ask a little more for their home, because they assume that the price will still be negotiated. You make an offer and this is accepted. The selling price is fixed. Together with your credit broker, you can calculate how much you can borrow and continue working on the file for your mortgage loan and have an estimate of your home made. Strange, that estimate of your house. You would think that the purchase price reflects the real value of your home?
Why does the bank ask for an estimate of your house?
The value of a home is an objective criterion. That is why the bank requires an estimate of your house. The bank or lender who wants to grant you the mortgage loan wants to know the value of your home, determined by an independent appraiser. That estimator or real estate expert will measure all spaces, view plans, take photos and perform calculations. After this he will arrive at an objective value of your house. Exceptionally, the appraiser or expert may take into account some subjective elements, such as the location of the property, the degree of completion of work carried out, the state of the property, etc. In many cases, the value that the expert will include in your home valuation report are in the same order of magnitude, but this does not always have to be the case.
Mortgage loan for the purchase price
If you are going to buy a house, you may need a mortgage loan. They will be willing to give the bank or lender in exchange for a guarantee, namely your home. It is therefore of the utmost importance for the bank that this guarantee is in good condition. Otherwise you risk that your home loan will be refused because the property guarantee is insufficiently sufficient. In other words, suppose you no longer repay your mortgage correctly, the bank wants to see its chances of recovering the borrowed capital.
Why an estimate of your house is always a good idea
Apart from this, it is always a good idea to have an estimate made of your house by an independent estimator. After all, an estimate is an objective instrument with which you see other parameters than those that you have in mind at first sight. Ideally, have an estimate of your dream house carried out before you make a bid and sign the compromise. But then you have to incur costs without knowing whether you can buy the house or not.
What does an estimate of a house cost?
The cost of an estimate varies from bank to bank. Some banks work with their own estimators. These are staff members who have been specially recruited and trained for this purpose. These estimators receive their wages directly from the bank. The bank will then ask you for a lump sum. Other banks work with independent estimators. These real estate experts are often surveyors and perform their duties independently and independently. They are instructed by the bank or credit intermediary to carry out an estimate of your house. You can usually assume that an estimate costs around $ 250.
Free estimate of your house after taking out a mortgage loan
If you take out your mortgage loan through Lance Sams, we will reimburse the costs for the estimate. This is nevertheless a gift of $ 250 ! What do you have to do for this? 1. Make an appointment with our employees so that you can start your home search well prepared. They calculate how much you can borrow and immediately make a simulation of your mortgage loan. 2. After submitting your credit application for your mortgage loan, the bank will likely request an estimate of your home. You advance the costs of the estimate and you pay the real estate expert. It goes without saying that you will receive a copy of the estimation report. The other copy goes to the bank. 3. If your mortgage loan is approved and you sign the credit deed with the notary, you start repaying your home loan. You cut out the voucher below and send it to our employee along with the proof of payment from the real estate expert. We will then refund the amount that you paid for the estimate of your house.
Don’t wait any longer and make an appointment
Make an appointment immediately to discuss your mortgage loan. Whether you want to borrow everything for a house or review your existing mortgage loan. Our employees are ready for you in a regional Lance Sams office.