When investing in real estate, it’s imperative to know the condition of the property. During the buying process, you are encouraged to get a mortgage survey. In this article, we will discuss everything you need to know about mortgage surveys or property valuation.
What Is a Mortgage Survey?
This type of land survey is used by the mortgage lender to ensure that the property is worth as much as you’re borrowing. It provides information about the value of the property. Mortgage surveys are different from other land surveys because they are requested by lenders or insurance companies. Also known as property valuation, mortgage surveys can act as a certification for the lender that the property is suitable as collateral for your loan.
Benefits of Mortgage Survey
This survey helps mortgage lenders make an informed decision before lending funds. The typical valuation report includes the property value and defects or issues. While it is done for the lender’s benefit, mortgage surveys are also beneficial to the property buyers. It allows you to determine whether you are paying too much or too little for your new property. You are encouraged to find a reliable mortgage surveyor. Wrong or inaccurate mortgage assessment is something that you don’t want to happen.
Mortgage Location Surveys
Requested by mortgage lenders, a mortgage location survey is different from a boundary survey. It shows the property lines as described in the legal description. Mortgage location surveys note property encroachments and all improvements done in the area. A professional surveyor can provide you with a comprehensive assessment of the property boundaries.
Mortgage Inspection Surveys
This is a less detailed version of a mortgage location survey. Its sole purpose is to locate the structures present on the property. In general, inspection surveys do not include boundary lines.
Mortgage Survey Process
A surveyor or surveying team will visit the property. They will inspect the building, boundaries, and property markers. Typically, the inspection process will last around 20 minutes. They will also look for any obvious problems or defects that could affect the property value.
After collating all the information that they need, they will create the survey report. The professional surveyors will make an assessment of the market value of the property. Once done, the lenders will receive a copy of the survey report.
If the surveyor agrees with the asking price of the property, the mortgage application may be approved. However, the surveyor may also think that the asking price is higher than the property’s worth. In this case, you may get a down valuation. This could affect the purchase or re-mortgage that you applied for.
Mortgage Survey Requirements
When buying a new property, make sure that you initiate communication between you, the lender, and the mortgage survey. This will help you understand the requirements needed for the survey. The mortgage survey requirements differ from state to state. It’s possible that the state only requires title insurance instead of a detailed mortgage inspection survey. Always ask your lender what type of survey is required for the mortgage loan.
Parts of a Mortgage Report
- Property Description
- Recent Improvements
- Building Insurance and Risks
- Easements
- Rights of Way
- Encroachments of Improvements
- Overlaps
- Existing Defects
Mortgage Survey Costs
If you’re planning to hire a professional surveyor, expect that you will pay 500 for the surveying fees. The final costs may depend on the timeframe, scope of work, and other factors. Call a land surveying company near you and inquire about their rates. In addition, you may ask them for a free quotation.
Talk to Our Professional Team
Pittsburgh Land Surveyors is here to meet your survey needs! As a high-rated surveying company, we can perform a wide array of surveying services. Aside from mortgage surveys, we conduct construction surveys, flood elevation certification surveys, ALTA surveys, and more.
With our technical and research skills, we can ensure that your house is within the property lines. Our team performs a wide plethora of surveys to determine if one property encroaches on another. No one beats our dedication to quality and affordable surveys. We never leave a job unfinished until our customers are 100% satisfied with our work!
To get a glimpse of our work, feel free to contact our staff. We will schedule an appointment that is convenient for you. Request a quote today!
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