Loan agreement with condition: valuation report

Hello everyone,

due to a lack of experience, I would like to ask for your assessment.

I want to buy a property, the purchase contract has been negotiated, and the notary appointment is scheduled for next week. I have also received the loan agreement, but on the condition that the appraisal must still be completed and that nothing significant comes up. Allegedly (statement of the bank) this is merely a formal step, and the delay is because no appraiser is available. Nevertheless, I somehow have reservations about signing the notarization without a final and unconditional financing confirmation / loan agreement.

What is your assessment of this? Is this a common situation?

Thank you very much for your answers.

Best regards, Michael

I will take a look at my loan agreement tomorrow to see what it says. I received it today, but I think that is normal. As long as the information and documents you submitted are correct, it is probably just a kind of verification to check whether the information is accurate. An appraiser will also be sent to me, but only after I have already moved in, and it will probably only be an external inspection. However, I think this is actually routine in construction financing. It usually involves high loan-to-value ratios.

Best regards

Hello, normal procedure. As long as it’s not a wreck, there will always be a deviation from the purchase price that is acceptable.

But if you buy for 200k and it’s only worth 30k because of a mold house or something similar... Then terminate the contract.

Hi

So many banks want to "inspect" the house through an appraiser (up to €400,000 loan amount), for example Commerz or DSL, they always do that, and it is for the "internal evaluation" independent of the contract.
That means if it is already approved, it doesn't matter to those two what the appraiser says. Often, the appraiser only checks whether the information the bank already used for the approval and evaluation is correct (size, features, etc.) to see if there are any "deviations." If there are no deviations = no worries.

Usually, they do not create an appraisal report but rather confirm that the information is correct.

If they do have to create an appraisal report, then there could be larger deviations (but this is very rare) and then you have to see how the bank reacts.
But I would still not worry because the bank has already created the contracts, if there was something wrong with the evaluation, they would have sent the appraiser out BEFORE creating the contract.

for the "internal assessment" regardless of the contract.
i.e. if it is already approved, the two "don't care" what the appraiser says. Often he only checks afterwards whether the information that the bank already used for the approval of the valuation is correct (size, equipment, etc.), meaning whether there are "deviations." If there are no deviations = no worries

Yeah, I've experienced it the same way. The bank's appraiser only came by after the renovation and moving in.

Another bank definitely wanted to send an appraiser beforehand. The only problem was that he did not let anyone in after the notary appointment...

Still, I somehow have reservations about signing the securitization without a final and unconditional financing confirmation / loan agreement.

There are so many banks... if necessary, you take another one.
Of course, this only works if the financial situation isn't already extremely tight.

I myself only finalized my financing 2.5 months after the notary appointment. The main thing is to have it done in time before the big payment day.

Simply put, the bank just wants to check whether the house described really exists.