In recent years, the focus the bank places on the actual asset they are financing has become more prevalent. No financial institution will approve a home loan over a property, without conducting a thorough inspection / valuation of it, to make sure it has the necessary value and no major defects that cannot be repaired within reasonable cost.
The valuation of the property is a standard part of the process of final home loan approval, and the cost thereof forms part of the ‘Initiation Fee’, paid when you accept a bank’s offer or quotation.
The asset, in this case a property, is the only security the bank has should the borrower default on the loan, and therefore they will take the necessary steps to ensure their financial input is secure. That is another reason why the bank keeps the Title Deed to the property up until the day the loan has been paid in full and you become the official owner.
So it is always a good idea to have a professional inspect a property you want to buy before making an offer to purchase it. If there are any concerns regarding potential problems and defects, mention them to the estate agent and make sure they are noted in the Offer To Purchase as conditions to be resolved before you take transfer. Any defects can be used as negotiating points for the price, should you wish to repair them yourself. Make sure these issues are resolved before you take transfer of the property, as you will have very little leg to stand on after that point.
Yours in Home Loans..