Why is a Valuation so Important?

When obtaining a loan to purchase a house the house being purchased is offered as security for the loan. The lender will value your house to determine how much money they will lend you and also if the property is suitable security for them. The lender will look at the following to assess your property:

• Postcode - The postcode is important to identify population and saleability.
• Type of Security - Commercial, Residential, Industrial, Vacant Land, Serviced Apartment, Uniit. 
• Size of Dwelling
• Enviromental eg. Contamination

The valuation identifies the prospective sale price if the lender needs to foreclose, and it can impact the LVR Ratio and loan product offered to you.  A complete analysis is required to identify an appropriatte lender with a competitive rate and LVR ratio.