One of first things that a Buyer should do when they begin looking for a home is make sure that they are pre-qualified for a loan. This gives them an idea of the price range to concentrate on when looking given the payment level they feel comfortable with. During the pre-qualification process they should also receive a Good Faith Estimate from the lender which itemizes the costs they should expect to run into to complete the transaction. One of the items that appears on that estimate is usually a Mortgage Survey. It typically costs about $150.
It’s called a Mortgage Survey because it is the kind of survey that is used just in the mortgage process. A Mortgage Survey is completed by a surveyor, but it differs from a standard survey because the surveyor doesn’t have to set the stakes and also it does not have to be quite as accurate. Therefore it takes less time to do and it doesn’t cost as much. The surveyor sights down the property lines and checks for encroachments over the boundaries by the neighboring properties or vice-versa. Things like mini-barns, fences and driveways are common items to check for…but actually they are looking for any improvements that extend over the neighboring property line from either direction. Then they make a drawing of the property showing the boundaries and location of all improvements. It also shows the location of any utility easements. This is good information to have as it will help avoid any major problems later with the boundaries and neighboring properties.
Lenders want to review this survey so they know there is no problems before making a loan. Also Title Companies want to review so they feel comfortable issuing a title insurance policy. When you think about it, the $150 is well worth it if it gives a new homeowner piece of mind about the boundaries. It’s also good for planning future improvements outside. Maybe there is room to build that mini-barn after all.
If you enjoyed this post, you may also be interested in:
