Appraisal of an apartment for a mortgage loan is a prerequisite for its provision. This indicator is a key factor in calculating the required loan volume. The appraisal of an apartment for VTB24 on a mortgage must be carried out by an appraisal company accredited by the bank. The result of the assessment is issued in the form of a conclusion, which indicates the value of the purchased property or collateral.
Definition
Most often, the examination is carried out in order to obtain a mortgage. This is a whole complex of serious procedures, which includes several approaches:
- Profitable. A professional assesses the prospects for growth in the price of a property subject.
- Comparative. Based on the analysis and comparison of transactions carried out on the market with identical property.
- Expensive. This approach allows us to delimit the volume of all costs that are needed for construction. At this stage, the expert establishes the degree of liquidity of the object.
Working with collateral
The efficiency of the lending process is important for banks, and their work is based on the following principle: the loan will be secured as much as the degree of creditworthiness of the borrower requires. A balanced collateral policy is one of the bank’s priorities, and working with it is one of the main aspects in bank lending.
The technology of working with collateral is a complex process that consists of eight stages:
- Primary assessment and examination.
- Coordination of pledge agreements and additional agreements, formation and approval of the project and the agreement thereto
- Registration of pledge agreements in accordance with the legislation of registration with government agencies, collection, submission and receipt of documents for registration
- Insurance of the collateral, coordination of insurance conditions and conclusion of an insurance agreement
- Monitoring of the collateral (scheduled and unscheduled)
- Revaluation of collateral (planned and unplanned)
- Removal of encumbrance (after full repayment of the loan)
- Resolving issues with problem loans or selling collateral (if the loan has not been repaid)
The most important steps in dealing with collateral are the first stage and monitoring of the collateral, so they are considered very carefully.
Valuation of an object refers to the process of determining its value, taking into account potential and actual income. At the first stage, the possibility of accepting the proposed property as collateral is determined, a check is made for the absence of restrictions and an analysis of the liquidity of the property is carried out. Next comes the collection of information on the property offered as collateral and its inspection. At this point, the need for an inspection of the item by an independent appraiser is also determined. When deciding on the method of conducting an assessment, the qualifications and experience of a specialist in working with collateral in the field of assessment are taken into account. If the examination is carried out by an independent appraiser, the costs of the appraisal are borne by the borrower. The assessment of collateral can be carried out by a bank's collateral specialist or an accredited appraiser.
Once employees have decided that a certain piece of real estate, property or goods, can be accepted as collateral, the bank begins to evaluate it. The collateral is presented to the bank based on its collateral value. The bank determines the amount that can be received from the sale of the collateral, minus the costs of foreclosure on the collateral and its sale. To calculate the collateral value, it is necessary to determine the market value of the collateral property, as it can become the starting point for further calculations.
When the parties to a transaction perform all actions correctly, taking into account all the necessary information, then the outcome of the transaction is not affected by sudden circumstances, due to which the object of evaluation is not rejected. This occurs under the following conditions:
- when one of the parties to the transaction is not obliged to reject the object, and the other is not obliged to accept execution;
- when the parties have thoroughly studied the subject for pledge and act only in their own interests, the subject of valuation is presented on the open market by a public offer;
- when the transaction price for the object is reasonable, and there was no coercion to the transaction on anyone’s part.
Necessity of the event
A mortgage loan is a long-term loan that is characterized by a targeted loan. When completing such a transaction, a collateral is always established, which is either existing real estate or newly acquired one.
At VTB24 Bank you can get a mortgage loan, which will be indicated in the appraisal report. The manager sets a liquid price, which is more important for the bank than the market price, sometimes by 20%. Lenders need an appraisal to know the current cost for each square meter of the apartment.
Valuation of an apartment at VTB24 Bank is an important stage for borrowers. This helps determine the level of compliance of real estate parameters with the indicators indicated in the documents. The expert commission quickly identifies illegal redevelopment, which in the future may become a serious problem for the new owner.
Security received in property for non-payment
Valuation of an apartment for a Sberbank mortgage
Security received in property for non-payments are financial and non-financial assets received by the bank in the settlement of overdue loans.
Fair value valuations are carried out regularly by suitably qualified specialists. Valuation verification should be done on the basis of the “principle of double control”. The assessment of collateral, together with periodic revaluation, is carried out by the Bank’s credit department or an independent appraiser using well-developed methods.
The following methods and models are used for assessment:
1. residential real estate:
- sales matching approach
- market value matrix per square meter
- statistical methods based on market data
- commercial real estate: comparative sales method
- income method
- for real estate and infrastructure projects under construction - an approach based on replacement cost
2. quoted financial instruments:
- market quotes
- comparative sales method
- income method (discounted cash flow method or direct capitalization method
- replacement cost approach
- par or face value method (for example, for unlisted shares
An important point in the technology of collateral management and its assessment is the distribution of management functions between bank divisions. At the end of the month, monitoring results for the entire collateral portfolio are processed.
Liquid value
Market value is important when buying an apartment, but the lender pays more attention to liquidation. This is the amount that allows you to sell real estate in a short time with minimal effort. In order for a borrower to have a mortgage approved, it is important to determine the market price of similar apartments as accurately as possible, since the liquid price will differ and deviate downward by about 80%.
VTB24 Bank approves mortgages based on liquidity. The estimated value is much less than the proposed market value. The client covers the difference with personal funds; sometimes it is necessary to take out a consumer loan. It is issued by the bank at high interest rates.
Another way out is to provide the lending company with collateral. This procedure increases the amount of the mortgage settlement amount. Clients often resort to the help of independent experts, who perform additional verification. Small nuances are identified that affect the price.
After examining the property, a basic document will be drawn up that guides the bank when issuing a loan. It is presented in the form of a report that has legal force and fully complies with all the customer’s conditions. Documentation – a clear justification of the cost of the object.
Only those specialists who can view the information of a self-regulatory company and have taken out insurance for their type of activity are allowed to draw up such papers. It is important to draw up a document with established standards, as it has legal force. The slightest inaccuracies will cause the transaction to be considered illegal.
Requirements for the expert appraiser's report:
- Full compliance with the standards of the Association of Russian Banks, abbreviated as ARB;
- Fulfillment of the requirements of the Association of Housing Mortgage Lending, abbreviated as AHML;
- Be in printed form;
- Availability of tables;
- All credit details must be included;
- Number of pages – no more than 30.
Look at the same topic: Housing Mortgage Lending Agency (AHML) - what is it and how can it help?
It must contain comprehensive data; detailed information about the customer and contractor is required. Information is always included to justify the methods and objectives used.
Where to get better conditions
Valuation of an apartment for a mortgage
A loan secured by real estate without proof of income from VTB 24 will not be the most profitable for the borrower - an increased interest rate, a large down payment.
You can take out a loan at legko-zalog.com, where the borrower will receive the best loan conditions. Offer includes:
- loan up to 100 million rubles;
- interest rate from 7.5% on shares and base rate from 9% per annum;
- repayment up to 30 years;
- provide up to 90% of the market value of the property;
- confirmation of income with a 2-NDFL certificate is not required.
A person can mortgage almost any real estate. There are no fees or penalties for early repayment. There are no prepayments.
People with damaged credit history can contact the company. It does not affect the final decision on the application.
Market price
When checking a property, it is important to consider the market value too. This is a price that is average among all similar options. When identifying prices, comparative, income and cost methods are used.
First, the specialist identifies subjects with similar characteristics and parameters. Their location must be in the same area as the property in question. Limited groups of property objects that are most suitable in terms of parameters should be used.
It is necessary to analyze the possibility of expanding the market price for residential space. The cost method involves certain monetary expenses to eliminate existing damage and restore the property.
Who can evaluate the apartment
The determination of value is carried out by a specialist with a professional education - an appraiser. The status of the appraiser is confirmed:
- availability of specialized education;
- membership in a self-regulatory organization (SRO) of appraisers;
- availability of insured liability.
The appraiser can work independently or on the staff of an appraisal organization. When applying for mortgage lending, you need to pay attention to whether the specialist is accredited or not.
Procedure
The process itself is very complex; specialists are given a huge list of tasks that need to be completed and combined the results in one report for mortgage approval. The main goal of the manipulation is to correctly determine the liquidation and market value of real estate.
All banks use the liquid price as a reference. This helps them minimize possible risks, since the market value may be 20% higher.
The procedure for assessing property when applying for a mortgage at VTB24 Bank is divided into several main stages: presentation of a completed report from the appraisal organization, direct signing of the agreement, and assessment methods.
The primary task is to correctly draw up the application according to the existing form, followed by collecting documents and submitting papers for a mortgage. After some time, the appraisers get in touch with the client, and the date and time of the specialist’s arrival for the inspection are mutually agreed upon.
In the apartment itself, the expert will look at:
- On the condition of residential real estate;
- Compliance with the BTI plan;
- Will take pictures for the report.
Nuances of the procedure:
- If the building was built before 1960, then a certificate must be attached to the main documentation indicating the type of floors used during construction.
- If the house was built before 1970, then you will need a document certifying that the building will not be reconstructed or demolished in the coming years.
After the activities are completed, the appraiser issues a report containing all related information. You need to have two copies, one with the receipt you give to the bank, the other you keep for yourself.
How to get a loan secured by real estate from VTB Bank
In short, a loan secured by real estate at VTB 24 is issued as follows:
TOP 7 best credit programs for loans from 500,000
| Bank | Collateral assessment | Sum | Term | Percent | Registration regions |
| Tinkoff | Up to 60% | Max. 15 million rubles | 1-15 years | From 11.9% | Russia |
| Oriental | Up to 70% | Max. 30 million rubles | 1-20 years | From 10% | All Russia excluding MSK and Moscow Region |
| MYZALOG24 | Up to 90% | Max. 90 million rubles | 1-30 years | Promotion - from 8.5% | Moscow, Moscow region |
| Sovcombank | Up to 60% | Max. 30 million rubles | 1-10 years | From 15.9% | Regions of presence of the bank |
| Pledger | Up to 70% | Max. 15 million rubles | 1-25 years | From 12.9% | St. Petersburg, partly Leningrad region |
| Sberbank | Up to 50% | Max. 10 million rubles | 1-20 years | from 13.3% | All Russia |
* Amount as a percentage of the value of the collateral property. Stages of obtaining a secured loan
- Choose the right company
- Click the "Checkout" button
- Fill out an application on the company website
- Filling out an application.
- Submission of documents.
- Making a deal.
Now in more detail about each step. You can submit an application from the bank’s website or come to the mortgage center and fill out an application with the help of a manager.
After reviewing the application, a bank employee will contact the borrower, answer all questions about the product and the transaction, and then arrange a meeting.
Next, you will need to collect a package of real estate documents and submit it to the bank branch. Papers will be reviewed within five working days. In rare cases, there may be delays of a couple of days.
If the decision is positive, a bank employee will contact the client and provide guidance on collecting documents for the real estate pledged as collateral and help order the estimated value of the apartment or house.
After final approval from the bank, all that remains is to insure the property. This is a mandatory procedure that cannot be waived. It is spelled out in the mortgage law No. 102, Federal Law.
If you refuse insurance, the interest rate will be 1% higher. The last step is to sign a loan agreement and receive funds into a bank account or card.
How much does the service cost?
It is difficult to talk specifically about the cost of appraiser services, because everything depends on individual characteristics. Taken into account:
- Layout complexity level;
- Object localization;
- Number of rooms in the apartment;
- Year of construction.
Nowadays, banks actively cooperate with accredited companies, so fraud practically does not occur. Lending companies carefully select specialists who evaluate property.
To save time and ensure the safety of your funds, choose an appraisal company that cooperates with the bank.
The lowest price for the services of an appraisal expert for 2021 was 2,500 rubles. In some regions, the cost of work can reach 7 thousand rubles, the average price is 3000-4000 rubles.
Where to contact?
It is better to contact specialized companies for a real estate appraisal, because... such organizations will professionally review all criteria and promptly inspect the specified property and draw up a detailed report.2 Only accredited organizations can provide appraisal services . This means that the bank is inclined to trust their assessment, and is confident that it will be met according to all federal standards.
An accredited specialist of an appraisal organization must have several, but very important points to perform his work:
- Be a registered representative of the organization of real estate appraisers.
- It is mandatory to have a civil liability policy, which must be at least 300 thousand rubles.
This document will ensure that in the event of an unintentional or special error in the execution of the report, third parties will not suffer. If the appraiser does not accurately determine the price of the apartment, this will be covered by this policy. The requirement for the presence of such a document is enshrined in Article 24.7 of the Federal Law “On Valuation Activities in the Russian Federation”.
Important! The buyer can independently choose an appraiser. But the bank has the right to demand an additional assessment by an accredited organization, and this will cost extra money.
Who can perform the assessment
Only those firms that have state accreditation and insurance have the legal right to conduct assessment activities. VTB24 Bank cooperates only with proven, reliable organizations that guarantee a high level of quality. In total, the list of companies where you can order an assessment includes about 300 items. The most common organizations:
- CJSC "Business Expert";
- Estima LLC;
- LLC "Kitosnova";
- Megapolis LLC;
- LLC "Industry";
- Investment Development Center LLC;
- Dividend LLC;
- LLC "Sovetnik";
- LLC "Independent Assessment";
- Avantage LLC;
- Otsenka Plus LLC;
- LLC "Invest Audit";
- LLC "Constanta";
- LLC "Bureau of Assessment of Fixed Assets".
See this same topic: For what reason might you be denied a mortgage at Sberbank?
A more complete list is presented on the VTB24 bank website www.vtb.ru.
Information required for the collateral portfolio
The collateral portfolio must have information support for correct work with it. In order to compose it correctly, you need to follow the plan below. Composition of information support:
- The structure of all types of collateral, its characteristics, title documentation and accumulation of information about the collateral portfolio
- Location of the collateral, results of inspection of the collateral, internal documents of the bank and optimization of the process in terms of verification, availability and safety of collateral
- Results of mandatory monitoring of collateral, encumbrance of collateral, revaluation of collateral, regulatory and internal banking documents, process automation for standard operations
- Determination of the frequency of the collateral assessment and its results, a report on the collateral assessment and information on the value of the collateral.
- Information about the location of the address of survey, insurance and appraisal companies and the number of valid contracts concluded by the bank with the companies
- The market value of the collateral, the collateral value of the property, fair value and more, a report on the assessment of the collateral, data from Internet resources, internal documents and other sources, determination of the amount of funds that will be received in the event of the sale of the collateral.
Documents for assessment
To conduct the event, you must collect the necessary documents. To VTB24 Bank you need to provide:
- Passport of a citizen of the Russian Federation. Brings the applicant who purchases the property.
- Technical passport of real estate, where there is a floor explication.
- A document that confirms the ownership of the present owner (deed of gift, will, deed of sale).
- Cadastral passport.
- Plan certified by BTI.
- Detailed photos of the apartment.
What is a collateral for corporate lending. Types of collateral.
The property that the client is willing to pledge as security for a loan product is called the collateral. Collateral can be of the following types:
- real estate - premises, buildings, structures, land plots, air, sea and river vessels.;
- movable property - equipment, transport;
- goods in circulation are finished products sold by the pledgor or raw materials used in the activities of the pledgor.
In addition, the subject of collateral can be securities, cash, property rights, etc.
Strictly speaking, the subject of a pledge can be any asset of an enterprise for which the pledgor has formalized ownership rights or rights of use and the pledge of which is not prohibited by current legislation.
Valuation disputes
It happens that the price shown in the report is underestimated or overestimated. This may cause a dispute regarding the assessment. If the cost data is greatly underestimated, then the buyer suffers. Overstatement is unprofitable for the bank, but this happens quite rarely.
Reasons for valuation disputes:
- The appraiser did not take into account the nuances of the condition of the real estate;
- Incorrect analysis that does not meet standards;
- Incorrect clarification of data that is not typical for a particular area.
What to do if the appraisal underestimates the value?
- The client can safely demand a re-evaluation if he provides evidence of the unreliability of the result of the first procedure.
- You can order an assessment from another accredited company, which is also a partner of VTB24 Bank.
- To increase the cost of a home loan, you can present additional methods of security.
- An option for obtaining a consumer loan for the missing amount of money.
Over the years 2018-2019, methods of combating incorrect expert assessments have noticeably increased. Borrowers defend their rights, trying to attract all legal means.
How to choose an appraiser
We recommend choosing an accredited appraiser. You will avoid problems associated with the bank’s acceptance of the report and save a lot of time. If you do not know which bank you will receive a loan from, look for an appraiser accredited in several banks at once.
The most important indicator when choosing an appraiser is price. Choose the cheapest option. Appraisers usually have the same deadlines. It will take no more than a week to prepare the report. To speed up the procedure, use electronic banking services. You won’t be able to select an offer by price here, but you will save your time.
Text: Elizaveta Kobrina
What parameters are assessed during the examination?
The task of an independent expert is to evaluate the market value of the collateral and issue an opinion. In order to make an objective assessment, he takes into account:
- The average cost of a similar property, among current offers on the housing market.
- Technical condition of an apartment building, year of construction, type of foundation, etc.
- Location of the facility, distance from regional centers, presence of socially significant facilities and other infrastructure.
- Internal and external equipment, state of communications, compliance of living premises with sanitary standards.
Expert opinion Evgeniy Belyaev Lawyer-consultant, financial expert
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Please note that the expert’s task is not only to evaluate the property, but also to check documents. He must check the ownership documents for authenticity, as well as compliance with the actual condition of the premises in comparison with cadastral documents
conclusions
When applying for a mortgage loan, an assessment of the property being purchased is a mandatory procedure. It is necessary to determine the real cost of housing, which may differ from its market price. This will allow the bank to adjust the loan amount.
VTB 24 cooperates with a large number of appraisal companies. The borrower has the right to choose a company independently, but it is recommended to contact an accredited appraiser. This will reduce the risk of ordering a service from an unscrupulous expert, since the bank has already verified the company before starting cooperation.
