Property buying process is quite complex subject that requires a depth knowledge and deep understanding of various properties, real estate laws and documentations. There are so many things that must not be overlooked before finalizing property investment and in those necessary things, Real estate property valuation is one and an undeniable factor for sure.
It is mandatory for every buyer to know the value of a property on which they suppose to buy. After knowing the exact value of a real estate property, a person can make his or her best purchase. Especially, when it comes to property loan matters; real estate property valuation becomes a crucial factor by which lending institutions or other banks pass the requested loan amount.
In this way, there is a great importance of real estate property valuation in property buying process and knowing the exact ways of valuation of a property is a common concern of many investors of this time. Basically, this process is conducted by a particular valuation firm. While valuation process, it includes the overall condition of a property and recent sale of same types of properties in similar area.
A property valuation can affect property investment in a great extent as it helps determining if a property is qualified for a particular home loan amount. Therefore it plays a great role in sanctioning a home loan by banks or loan institutions. Apart from being a necessary part for sanctioning loan amount, real estate property valuation has a great significance in various processes that are as below:
* Mortgage Insurance of Lenders
* Grant for First Home Owners
* Concessions for government sponsored institutions
The Mortgages insurance of lenders protects lenders from financial crisis when they end up their mortgage loan for defaulting. In this insurance, a lender should cover insurance after borrowing up to 80 percent at least of your property and to calculate the total premium, an LMI calculator is generally used.
Grant for first home owners is a national level scheme which is managed and funded by territories and states. The amount is varied as per particular state and to know the exact amount, consulting a broker of mortgage is the best option. To get qualified for this grant, you must have a sale contract or pre-approval. To apply for this grant of first home owners or any other government sponsored grants, taking help of a broker would benefit you and make it quite easier. A broker would guide you entire process of applying and processing your application for such concessions. This is quite time saving and effective way of property investment for sure.
Therefore, all these are cases in which property valuation is necessary for getting advantages of it and thus, you can certainly make astonishing property investment for sure.