When you apply for a loan, the bank has the property valued by a certified expert. What does that expert look at, and how does it affect your credit?
When you apply for a mortgage loan, the bank always has the property valued by a certified property expert. That valuation helps determine how much the bank is prepared to lend — and on what terms.
What does the bank's valuer look at?
The valuer assesses the structural condition, the location, the habitable floor area, the energy performance and the current sale value on the basis of recent comparable transactions. The valuer also establishes a forced-sale value, which the bank uses as a floor in the event of default.
What if the bank valuation comes in below the purchase price?
If the valuation is lower than the purchase price, the bank will not finance the difference. You have to contribute it yourself from your own funds. That is why it is useful to commission an independent valuation before buying — it puts you in a stronger negotiating position.
Independent versus bank valuation
A bank valuation is commissioned by the lender. An independent valuation by Dekoninck Vastgoedexperts is neutral and serves your interests alone — ideal preparation for a purchase or a credit application.