Hello, any lawyers or related field people could advice.

My auntie bought a house property that is priced at 600k, the bank approved the loan of 90% of 600k and signed all relevant documents and so on so forth. After all of those process and procedure, now the bank hired a valuation company to value the property.

This valuer went to the house, did some drawing and stuff, and the report came out that the house is valued at 600k. My auntie were shock as initially the bank itself value the property at 700k more or less. So at this point, would it affect the loan that is already approved or what will happen ? Because I heard the main purpose of the bank wanting to know the exact value of the property is so that they know they are not lending more money than they should, or saying they ( the bank ) later "rugi". Would appreciate any advice.

This post has been edited by Sotsotzaii: Mar 7 2022, 06:20 PM

Ohh ok understood. My aunt just told me her bank loan she got approved from the bank is 540,000, which is based on 600k, so does this means the bank approved the loan of 90% at 600k without the proper valuation of the property ?

I see, ok now I get a better understanding of how this whole valuation works. No wonder the bank ask my auntie to sign and approved the loan, the documents etc, and all the SnP is all done, THEN ONLY they hire the valuation company that is under them to go and value the property.

So that is why the bank KNEW to loan at 90% at 600k, because they instructed the valuer so the valuer is actually just following the bank's instructions, but the amount valued can be equal / more or less but not far apart ? Because I thought if the valuer value at 700k, then wouldn't we need to re-sign all the documents again because then the bank would have to loan 90% at 700k, for example.

I agree, but then again I'm thinking, what do these valuer based their value on ? I mean, I see this valuer went to the house, did some exterior drawing, very rough sketch that even I can draw, went in take a look inside, took pictures of the rooms, living room etc, then done.

I mean no offense here to him or anyone, but he doesn't seem well experienced, and there's the thing about the bank trusting them with whatever report they come up with, this whole valuation process just seems quite dumbfounded, at least in my auntie's case.

That means they just wasted RM 1450 down the drain.

What a waste. Tsk

And if things doesn't go wrong ? That money is indeed down the drain ?