My NRAS finance valuation came in low – what do I do?
It has been said that less than 10% of all mortgage brokers really understand what NRAS is. Not all of those really know how to finance it.
On a positive note NRAS finance is becoming more common and more main stream. More lenders are accepting NRAS but this does not mean that every individual that you are going to deal with at the bank understands the product. There my be piles of bank policy but the lender may not really know and often it is down to the broker to lead the way.
So back to the question at hand. What do you do if your valuation comes in low?
Firstly, we need to go back a step. Your mortgage broker cannot give you financial advice but they should prompt you to ask questions of the right people and or put you in touch with the right people. Have a look at the basis on which you have made the decision to buy.
What evidence is there to support the price you are paying?
Is there evidence that supports that price that is less than 90 days old?
Is the market level, rising or falling?
Is there non NRAS housing stock sales that supports the price you are paying?
If there is commission payable to a marketing company is it in line with industry standards?
Once you have thought about these issues you will then be in a better position to know what to do if your valuation comes in low. If your investment criteria and research or due diligence supports a higher price then it may be time to think about looking for a new lender.
Valuation companies may review a valuation in light of strong comparable sales but this is often impracticle because you are a purchaser on a clock to complete the sale.
However, the best case scenario is an upfront valuation. Your broker can do this for you and in most cases it is free of charge. If this has happened to you ( your nras valuation came in low ) then contact Don Nicolussi at Home Loan Warehouse. Rather than shy away from NRAS deals Don will get your deal back on track.