CREDIT EVALUTION: CREDIT INVESTIGATION TYPES

1.Character 1.Personal,Data,Residence Checking

2.Collateral 2.Employment Verification
3.Capacity 3.Business Verification
4.Capital 4.Rental Verification
5. Condition 5.Trade References Checking
5.Bank Checking
CREDIT INVESTIGATION
*A procedure undertaken by a financial institution to vet a potential client’s ability to pay back a loan.
*An appraisal of a perspective borrower’s ability and willingness to repay a loan.
*Useful for the evaluation of the credit worthiness of a loan applicant.

CREDIT INFORMATION
*The company or individual borrower’s capacity to pay
*Information used to examine or evaluate to come up with a decision
*Records of all borrower’s usually available thru consumer credit information agencies such as the CIC (CREDIT
INFORMATION CORPORATION)
*CMAP (CREDIT MANAGEMENT ASSOCIATION OF THE PHILIPPINES)
Real Estate – Refers to a property consisting of land and buildings on it.
Real Estate Appraiser – An individual who estimates the value of a certain real estate.
Improvement – Any building or structure built on a lot.
Value – worth, importance
Cost – The price paid for goods or services or the amount required to create or produce the good or service.
Price – The amount asked, offered or paid for goods or services.

5 FUNCTIONS OF APPRAISAL TOOLS NEED TO USE IN REAL ESTATE APPRAISAL:

1.Purchase or sale PRIMARY TOOLS
2. Long Term Loan secured by real estate 1. Tax Mapping (from respective Assessor’s Office)
3. Insurance 2. Approved Survey Plan (from Bureau of Lands)
4. Imposition of tax SECONDARY TOOLS
5. Taking of property by government agency under the right 1. Homeowner’s Association Subdivision Map
of eminent domain 2. Site development plan from developers
3. Lot and block numbering in the area
PURPOSE OF APPRAISAL: OTHER TOOLS
1.Table Appraisal FACTORS TO BE CONSIDERED: 1. Neighborhood and Barangay officials
2. New application 1. Property Identification 2. City Engineer’s Office
3. Updating 2. Saleability 3. Cadastral Map
4. Loan Renewal 3. Price GENERAL RULE:
5. Construction 4. Time · Should use the primary rule but supported with
6. Renovation secondary rule
7. Foreclose
HIGHEST AND BEST USE – The key element in determining the MARKET VALUE of the property
Market Data Approach – Makes use the comparable method wherein the value of the property is based on sales and
listings of comparable property by reducing reasonable comparative sales.

APPRAISAL PROCESS:
1. Check the completeness of the Appraisal Requirements EXAMPLES OF REAL ESTATE
2. Establish the type of property and purpose of the appraisal 1. Vacant Lot
3. Review Land and Improvement details 2. Land and Building
4. Do preliminary Data Gathering (Land and Improvements) 3. Condominium
5. Identify the exact location of the property 4. Townhouse
6. Inspect the property
7. Evaluate
8. Check the completeness of the Appraisal Requirements
9. Establish the type of property and purpose of the appraisal
10. Review Land and Improvement details
11. Do preliminary Data Gathering (Land and Improvements)
12. Identify the exact location of the property
13. Inspect the property
14. Evaluate