Collateral in banking practice is the most common form of securing the return of credit funds. In order to determine the ratio of the value of the collateralized property and the amount of the loan, an assessment and determination of the real market value of the object is carried out. This procedure is usually performed by an independent appraisal company.
Instructions
Step 1
Select an appraisal company. As a rule, banks strongly recommend contacting specific firms with which they have partnerships. It should be noted that you can independently choose an appraiser, but at the same time choose the company that has a good reputation and has been working in this market for a long time.
Step 2
Check with the staff of the appraisal company for the list of documents that you need to complete the contract and draw up a report. If the collateral is an apartment, then you will need a purchase and sale agreement, a certificate of ownership, a cadastral passport and a plan from the BTI, a copy of the owner's passport and documents that confirm the fact of encumbrance.
Step 3
Sign the appraisal agreement. This procedure can be performed at the office of the appraisal firm or directly at the location of the collateral. In this case, as a rule, it will be necessary to transfer an advance payment in the amount of 50-100% of the total cost of the work. Do not forget to ask for a cashier's receipt, which will confirm the transfer of money for the service. It will be needed in case the appraiser does not provide a report on time.
Step 4
Agree on a date and time for the assessment of the collateral. At the same time, a detailed inspection of the property will be carried out and the main points will be photographed. If you are pledging an apartment, then the entrance and the yard area will also be examined. It is advisable that the inspection will appoint for the daytime so that the photographs of the object are clear and bright, since due to poor lighting some points may be blurred, which may affect the assessment.
Step 5
Get a ready-made report on the assessment of the collateral. All pages must be bound and numbered, at the end there must be a seal of the company and the signatures of at least two appraisers. Another copy of the document is sent to the bank where you intend to apply for a loan.
