Purchasing a property represents a very important step. Beyond identifying your dream home, it is necessary to carefully examine your economic capacity and the subsistence threshold adopted by banks for the purposes of granting a mortgage. Following the identification of the property and the determination of a monthly installment compatible with the presumable expectations of the credit institution, the procedure for obtaining the mortgage approval begins. At this stage the mortgage bank appraiser, a professional figure who will analyze the property being sold to estimate its market value. In this article we will delve into the functions and methods of operation of this professional.
Mortgage bank expert: who is he?
The estimate of the value of the property is carried out by a expert, appointed by the bank or chosen independently by the customer, at his own expense. But when it comes to bank expert, what does he check?This professional figure, authorized to carry out this activity and registered in the professional register of competence (architect, engineer or surveyor), receives from the bank, following his appointment, the entire documentation relating to the property which is the subject of the request for mutual.
There documentation in question includes:
- Documents relating to the history of the building;
- Property information;
- Land registry income and any changes made to the building over the years;
- Deed of origin or previous deed;
- Cadastral plan;
- Certificate of habitability;
- Building practice (in the case of a recently built property);
- Estimated metric calculation (in the case of a property to be renovated).
The aforementioned documentation plays a role of primary importance and is acquired by the expert prior to carrying out the inspection.
What does it mean when the bank sends the appraiser?
Before disbursing a mortgage, the bank carries out a series of checks, including that relating to the property that will be used as collateral. For this reason, he always decides to carry out an audit by appointing an expert. If you have reached this point, it means that the credit institution has already positively evaluated the capital requirements of the customer and deemed them appropriate to grant him the loan. Sending a technical is only the last step of the investigation to finally reach the disbursement of the mortgage.
Therefore, the appointment of an expert only means that the investigation is about to be concluded positively as it will be up to the latter to make an overall evaluation of the property and from his evaluation will derive the amount that the bank will decide to disburse.
When does the appraiser leave the bank for the mortgage?
As already mentioned previously, if the bank appoints an expert to evaluate the property that has been decided to purchase, it means that it has already given a feasibility opinion for the successful disbursement of the loan. The objective of a technician’s outing is to verify and estimate the actual commercial value of the property.
In this case, the bank’s objective is that the mortgage contractor does not ask for an excessively high loan and that he stays within 80% of the commercial value of the property. It is a way for credit institutions to limit the risk during the mortgage disbursement phase.
What does the appraiser do when he comes to your house?
The process for obtaining a mortgage can sometimes seem long and tortuous but in the end it leads to the desired result and that is precisely what counts: the purchase of the much desired house. Especially when there is an inspection by the technician sent by the credit institution, many ask themselves the question: If the bank sends the expert is it a good sign? As previously mentioned, it means that the mortgage process is continuing smoothly. Now, however, it is up to those responsible to evaluate the state of the property and carry out a precise report to bring everything to a conclusion.
Potential buyers can also participate in the inspection. What does the mortgage bank appraiser check?
- check the surface;
- the conformity of the building with the plan;
- the cadastral survey received from the bank;
- the state of the premises.
All elements that will affect the actual value of the house. Any discrepancies with what appears on the documents can hinder the granting of the mortgage by the bank. This can happen especially in the case of amnesties or interventions to secure parts of the building which entail additional costs.
Equally important, especially in terms of the usability of the building, are the water, electricity and gas systems. Three predispositions that the expert certainly checks. Another step is the evaluation of the real intended use of the premises. In this case, any non-conformity of the property would entail the burden of incurring further expenses for the payment of charges and penalties when updating the land registry documents.
During the inspection, the expert will also evaluate the state of the appliances such as:
- garage;
- garden;
- cellar;
- possible laundry room separate from the apartment.
Even in this case, they must be compliant so as not to jeopardize the sale of the house. Finally, the expert will also evaluate the commercial value of the property in other respects:
- where it is located;
- proximity to useful public services.
All important elements that affect the sale of the house. Faced with this information, there are always those who ask themselves whether, if there were any “differences”, the bank appraiser turns a blind eye. Should such cases arise, a technician sent by the bank or even chosen by the customer could never ethically make such a choice as even the slightest discrepancy compared to the documentation collected previously is related.
What does a mortgage appraiser do?
Once the inspection has been completed and the evaluation carried out, the mortgage appraiser prepares the report to be delivered to the bank, attaching the documents and photos taken on site. In this case, the question arises spontaneously: what are the times in which the bank expert sends the report to have the mortgage disbursed? As a rule, the aforementioned is sent to the credit institution by the 5 and 10 days. Obviously, each credit institution has different timing and management methods. For example, the Intesa Sanpaolo mortgage bank expert takes on average two weeks to draw up and transmit your appraisal report.
If the evaluation made by the expert fully satisfies the bank, the established price will form the basis for determining the amount of the loan that can be disbursed. As a general rule, 80% of the minimum value estimated by the appraisal and the actual purchase price is granted.
Home mortgage expert: how much does it cost
When you apply for a mortgage, you are aware that among the countless expenses there are also related ones expert who will have to inspect the property you have decided to buy. An expense that varies according to the area and the bank. On average, the cost is around 200-300 euros.
However, in the case of a renegotiation or subrogation of the mortgageas sanctioned by Bersani decreethe appraisal costs are totally borne by the bank, given that it takes on the mortgage following the portability.
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