Mortgage Survey

What is a mortgage survey? The mortgage survey aims to satisfy the lender with valuable information, determining the value of the property. Often the survey is cutting out a piece of property from a larger one so that only that portion is financed.

A mortgage location survey is different from a boundary survey and is not used for construction or for boundary determinations. A mortgage location survey is usually requested by your mortgage lender or title insurance company and is intended to provide proof that certain improvements are located on the property as described in the legal description. These surveys identify the major buildings on your property such as the house, garage, and sheds or other structures, as well as whether your property encroaches on any neighboring properties or easements. Likewise, these surveys determine whether any neighboring properties encroach on your property.

An example would be not using 100 acres for financing and instead cutting out 5 acres for a mortgage to build a home or refinance one. The mortgage survey could be provided to a lender to only provide leverage against that smaller portion of property vs. the entire 100 acres. In defining a smaller portion of land, you can utilize the remainder without having to tie the property up long term. Most large tract owners would have a mortgage survey performed of the small amount of property surrounding their home to separate from the larger tract.