loan structures, page-15

Appreciate the benefits of your knowledge King.

Unfortunately , there are some of these things that you can only learn as part of the process . If nothing else , it helps you ask the right questions next time.

In my case we discussed my valuations as part of the application . The manager ( a local ) was in agreement with my numbers. It was only later that the bank changed their view on one particular property . There was a very similar property down the road that was for sale for over 25% more .
The bank argued that just because a price is asked , doesn't mean that is what it's worth . Taking the timing into consideration , they had me by the short and curlies . In the end , I had to give them more equity .

And yes , the property down the road sold shortly after for the advertised price . Another one has since sold for 33% more than the bank's valuation .

So , for me , even though I don't plan on buying anything anytime soon , you just don't know what might happen in the next couple of years . You might need to access the equity to help a family member or a property next door might come up unexpectedly , you just never know.

Best to have at least some flexibility.