Valuation for a Mortgage

Hi All!
This is my first post so bear with me! My boyfriend and I have just received Mortgage Approval In Principal for €300k - 92% ltv through a broker. Its a prime mortgage. We are both first time buyers. We have found our dream home now which is worth circa €270k. We have been informed that the next step is a Valuation. Our queries are as follows:
1. How long should it take to organise the valuation?
2. How long should it take for the Valuer to complete their report?
3. How does the Valuer know what value to put on the house in the current climate?
Perhaps the Valuation is just a formality?
Thanks!

1. & 2. I'm assuming your broker will arrange this for you. Around Dublin area, some of the efficient valuers will make an appointment to inspect on the same day they receive the instruction. Then it takes around 24 hours to write or type up the report.

3. Estimate based on knowledge of similar properties in the area.

While it's certainly not an exact science in that one valuer's opinion may differ from another, it's not just a formality. If the valuer believes the house to be worth less than what you're paying for it, the mortgage will be restricted to 92% x valuer's opinion.

Thanks for this, One last question what is the timelag between the valuers report and the loan offer being issued?Thanks

We had a valuation done on the Friday and the report was sent in. You could be waiting a week or two for the loan offer to go through, depending on weather the bank needs more documentation off you, which may cause delayes

Thanks Carrieann, what type of additional info could they require at the time-I feel like we have given them everything but the kitchen sink! Have you any idea how long from the valuation it might be until close?

Has your bid been accepted? If you factor in two weeks from valuation to loan offer, then it can take anything from 1 month to 3 (or more) months to actual close. It depends on the speed of each side's solicitors and if there are any title issues with the property (which would need to be cleared up before you actually take ownership). It's a ways to go yet!

Good luck
Sprite

Hi. i have a similar question like P27 asked. i know the valuer is going to value the apt tomorrow, and i will have the loan offer by the end of this week, then i think i will be called to do the snag list, lets say the problems with the apt are very small, how long will that take for the builders to de-snag and the contract be posted out to my solicitor and sign?

eskei,

From the time you put your dospit down, I think you have 21 days to sign the contracts, these should be sent to your solictor, while your waiting on your loan approval from the bank, you may have to put a further payment down, once the contracts are signed, then you will be asked to do a snag on your apt. You dont start paying your mortgage until you step foot into your front door

thanks carriean

oh..okay. i actually didnt know that. i always thought u do the snag and de-snag, once everything sorted, then u sign the contact?? i have put down the deposit last week, do u know in general how long will that take for the builder to fix those small problems with the new apt and the agency send you the contract?

Thats the way ours is going yeah, pay a further payment snag and re snag to make sure it done, then you draw down your cheque for your mortgage.