alternatelenders
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MortgageBroker mbabc.ca spring 2014 | 33
than an estimate by the borrower, or nothing at
all. Ultimately, an appraisal is usually required.
Alternative lenders typically have a short list of
approved appraisers so check with your lender
to see who is on their list before you order the
appraisal. ere is a lot of crossover between
various private lenders' 'approved' lists, but
they aren't identical.
What is the amount of the
loan and LTV requested?
Combined with the valuation of the property,
the requested loan amount gives the expected
LTV. Although a lender indicates that 75 per
cent is their maximum
LTV, if they see the
property as not very marketable, they may scale
back the
LTV for that deal. Factors that affect
marketability are: location, condition, age and
use. ese factors will affect the price and time
to sell a property if the lender ends up with the
property. Different lenders have varying risk
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