Valuation Fee
A mortgage valuation is a process where the borrower pays a fee to the lender to have the property valued in order to determine that the security is sufficient to cover the debt position. This enables the lender to take a commercial view on whether the property is worth what the borrower says it is and whether it is suitable security for the Mortgage.
In some cases where competition is high the lender will waive the valuation fee in order to get your business. Some lenders have internal valuation staff, whilst others use external valuation companies. Whoever carries out the work, the valuer should be a recognised member of the main trade body - the Royal Institute of Chartered Surveyors. Valuation fees range accordingly but expect to pay between $150 and $300 for the valuation.
While the mortgage valuer will not necessarily inspect the physical condition of the property (for a more detailed check on the property you can look at organising a more detailed survey yourself) it does serve as a brief check on the location and general condition of the property and picks out any glaring disasters waiting to happen.
The mortgage that is offered to you will be based largely on the results of the valuation, as the lender will not wish to lend you more money than the property is really worth.
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