QUOTE (Bluenomi @ 12/02/2013, 11:14 AM)
Generally banks will only lend you what they value the house at minus the deposit they require. So if they value a house at $450k but require a 10% deposit, they will only lend you $405k. Generally it is a bad idea to pay more for a house than the bank values it at.
I don't think this is the case any longer. Banks are being very conservative in their valuations and the valuations can vary widely between lenders.
When we looked at re-financing last year, we had one bank value our property $150,000 less than our current bank, yet the independent valuer valued it at $100,000 over our current bank's valuation. so a variance of $250,000....
Yet based on current sales in our area, the independent valuer is closer.