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The thought for today;
Submitting a file to a lender with an APV/GVS system?
Most lenders auto valuation systems cap out at a 750K maximum property value, However just because your clients home is valued at 751K or greater does not mean an appraisal is the only solution.
Instead there is an opportunity for you to add value by speeding up the process for the clients benefit.
Rather than focusing on the value of the property, instead consider the mortgage amount as the key metric.
In other words do not think of APV when the property value is 750K or less, Think of APV when the mortgage amount is 600K or less.
i.e. If clients are requesting 600K (or less) against a property valued at greater than 750K – simply input the value at 750K when submitting the file.
Admittedly with some files the low LTV and equity held in the property over and above 750K are required as cornerstones of the approval. However when it is a strong application on all key fronts this edit of the application can be a way to keep the process moving along efficiently.
If you are a Broker covering clients appraisal costs then there is also a small win here for your pocketbook. That is of small importance compared to having a client happy not to have to both wait around for an appraiser to show up and also feel obligated in many cases to spend hours cleaning up their home.
Often a bit of explanation to the client as to why their 900K home, for example, is showing on the commitment docs with a ‘value’ of 750K is required, but this is easily addressed.
This is perhaps the type of tip useful for 1 in 100 applications. That said I will try and bring you 99 other suggestions for the other files over the coming year or two.