Will I Require Updated Valuations for Partial Discharge?
After a lender offers the applicant a set of loan terms, the expectation is that the terms will remain intact. For example, changes to a fixed-rate loan incur break costs. This mortgage is a contract between the applicant and the lender, and the lender and wholesaler.
Property owners interested in a partial discharge may need updated valuations. The partial discharge alters the original agreement. The loan was based on a set of valuations. Altering it opens it to re-evaluation.
The property owner is asked to fill out the partial discharge paperwork. The lender takes a look at the property coming off the title and loan. To determine the new loan amount, the lender updates the remaining property valuations.
Keep in mind that the process requires three to four weeks to complete. It’s mostly administrative work as opposed to a mortgage application where a full financial background check takes place.
Once everything is settled, look over the new loan one more time. Ensure that the valuations remain acceptable too. Double-check that the correct changes were made to the loan and title. After all, the lender’s information is removed from the title once the property is paid in full.
Mortgage House also helps clients refinance home loan.
Updated Valuations and Partial Discharge Process Conclusion
The partial discharge process sometimes requires updated valuations. This adds another layer to the process. However, it’s in the interest of the property owner to ensure that the paperwork is in order. For more information about the process, contact the loan specialists at Mortgage House.