Mortgage Valuation Vs Homebuyer Survey: The Differences

The main differences between a mortgage valuation and a homebuyer survey are that a valuation is a necessary step if you are seeking to take on a mortgage for a home purchase. A survey is entirely optional and gives an idea of how much a property is worth. A mortgage valuation benefits the lender, whereas a homebuyer report is in the interests of the buyer.

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What is a mortgage valuation and why do I need one?

As part of the home-buying process, there are a number of steps that are required. One of these is to obtain a mortgage valuation. Lenders will want to make sure that their money is safe, and they will make a decision on whether the property you are planning to buy is worth the amount you intend to borrow from them. A mortgage valuation is both necessary and useful, and you will receive a decision within a few weeks. Sometimes a property is valued at less than you expect, and this can also affect the amount of money you can borrow.

What is a homebuyers survey and what will happen during a visit?

The optional home survey involves a surveyor inspecting the inside and outside of the main residence and all outbuildings. They will record any significant visible defects that are clear during the inspection. The inspection will encompass the entire property, including all physically accessible areas. The surveying professional will not look at furnishings, as they are only concerned with detecting possible structural defects. They will not lift carpets or floorboards, and they will not move any furniture – neither will they require cupboards to be emptied or electrical fittings to be removed.

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Is the homebuyers survey optional?

The survey is optional but serves a useful purpose and can make the process of moving more seamless. Even though a large proportion of people still rent their homes, the Republic of Ireland is experiencing a rise in the number of people aspiring to own their own home. According to RTE, a total of 84% of tenants surveyed are keen to own their own home at some stage in the future. If you do decide to move and require a home buyers survey Nottingham is home to professionals who will assist with the completion of this aspect of the process. You can visit Sam Conveyancing for a friendly professional service which will take the stress out of the process.

To summarise the differences

While a mortgage valuation is necessary, a survey is not. The surveyor does not carry out specialist tests, and they will not assess the safety of the electrics or investigate the plumbing.