Underwriting Standards
Borrower - credit and experience
Every new borrower completes a standard loan application. This application is evaluated together with the results of their credit report. In addition, the borrower’s experience and track record of buying, repositioning, and marketing properties is also considered prior to the final loan structure is determined. Most of the Anchor's borrowers have a history of borrowing money from Anchor and successfully selling the property in order to repay the debt in a timely fashion.
Property - market valuation
The primary security for an investor is the equity of the property securing the loan. Anchor places a strong emphasis on due diligence and property evaluation. Upon receiving a request for a potential loan, a comparative market analysis of the property is immediately performed. In addition to evaluating the comparables, Anchor inspects the exterior and interior (when possible) of the subject property and determines if there is enough equity for the potential loan. After reaching an internal value, a certified appraisal is also ordered to gain an independent valuation of the property.