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Mortgage, house value, and furnishing to showhouse level

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  • 23-05-2008 11:12am
    #1
    simon333
    Closed Accounts Posts: 82 ✭✭


    Hey,

    from my understanding, a bank will give you a mortgage based on an acceptable value of the house. So, a house is on the market for 270k or whatever, the bank will accept to provide a mortgage of say 90% of 270k, fair enough.

    What if you haggle for 265k with all white goods. Bank is still ok with you getting extras as part of the house price, right? (Please ignore the issue of how much to haggle!)

    So what if you do a deal with the builder that you'll take the house at 275k if it's fully done up to showhouse level, including furnishings, flooring, curtains and white goods? Does the bank say "Hey, that's 5k above the asking value/market value, we're not going to stretch the mortgage past 270k"?

    Simon


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    The bank will send out a valuer before they approve the mortgage. The bank will rely heavily on that. They're not overly concerned about what kind of deal you're doing - if you offer 15k above asking to include a whole pile of furnishings, but the bank valuer says that it's worth 15k less than asking, the bank probably won't give you as much as you want.


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    #3
    adam.number2
    Banned (with Prison Access) Posts: 64 ✭✭adam.number2


    The bank won't send anyone out... the bank will give you a list of people who you can get to put a valuation on the house and whom they trust. Ulitmately you will be the one paying their fee and I would be very surprised if you had a problem. They have to maintain the reputation so that the bank trusts that the valuations they give are accurate, but 5 or 6 grand here or there....

    The bank ultimately are worried about how much has to be paid over to the builder and do they have enough colateral to cover the loan if you stopped making payments for some reason.

    Therefore, I think you will be fine, I wouldn't even mention the white goods/decoration to showhouse level to anyone.


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