What Should Come First, Mortgage Valuation Or Survey? Here Is The Answer!

In the challenging economies, it is really a stressful time when you buy a property. Yes, there is a joy of owning your ‘own’ home, apartment or farm house but at the same time it is the time when you need to be organized the most. There is always a mode of uncertainty and indecision when you get totally puzzled. What to do next? What should be the right sequence of steps? At times, you get confusing suggestions from different people.

Amongst the commonest dilemmas, the most popular one is whether to get the survey done first or the mortgage valuation? When you ask the same to a seasoned surveyor who the client’s needs first and ensures that the clients are guided the best, you get the right advice.

When you contact a genuine surveyor, it asks a few questions

To give you the best advice and to help, a seasoned surveyor asks a plethora of questions to you. The reason is, the agency wants to know whether you are buying the property with a mortgage. If yes, then have you carried out the mortgage valuation?

You might be curious about the rationale behind the question. The logic is, a good surveyor doesn’t want to put an unnecessary financial burden on your pockets. For example, the surveyor carries out RICS Homebuyer Survey. Immediately after the survey, mortgage survey also happens. Suppose the property gets down valued, and the vendor is not ready to negotiate on rates. As a result, you pull out. Don’t you think the survey is unnecessary and a waste of money in such case? Yes, it is indeed a surplus.

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Let’s understand it by an illustration

Assume a property that receives the mortgage valuation from the finance company or bank and the valuation is 5000 Pounds less than what had been offered by you. The vendor is not ready to accept the valuation and he is reluctant to downgrade the rate. He prefers pulling out of the deal instead. If you have contacted a genuine surveyor, then it would recommend not to go for the building survey.  It is just to save a few bucks if the client.

A company that plays foul will take the survey assignment and charge for the same without waiting for the result of the mortgage survey. Of course, you will never go to such company in future. The transaction leaves a bad taste. You would like to tell others about it to save them from the financial loss.

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There is a difference between valuation and survey

Don’t misunderstand with the illustration that you do not need a survey if there is a mortgage valuation happening. Remember, the valuation is just the financial assessment whereas the survey is the structural inspection. Both are necessary and compulsory. Mortgage valuation mentions the defects that may affect the security of the mortgage loan. Valuation talks about the minute details of structural strength. They are not substitutes. The only thing is, you need to follow the right sequence.

About

Having served 16 years in the army Colin re-educated during the early 1990’s including two years at the Camborne School of Mines reading Mineral Surveying and Resource Management achieving a first class Diploma (Dip CSM). This allowed direct entry to the second year at The University of the West of England, Bristol reading Valuation and Estate Management. Training and experience was gained with Exeter City Council Estates Department and Sheperds Chartered Surveyors qualifying as a Member of the Royal Institution of Chartered Surveyors in June 2003. Colin set-up the company in May 2009 and covers the complete range of services.

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