Home Mortgage Refinancing Procedure: Survey

Home Mortgage Refinancing and the Importance of a Survey

There are different kinds of surveys available for real estate, and it could be important to your financing to know the differences. This survey is designed to show all the boundaries in a property, such as set back lines and easements, but not all lenders require them. However, surveys aren’t just for the lender. If you are planning improvements with a cash-out refinancing or home equity loan, you may need the survey to ensure that you don’t install something that overlaps a property line.

Home Mortgage Refinancing Requirements -- Your Mortgage Company

A mortgage company will want a location survey at the very least. This shows where the property lies with respect to other things, along with setback lines, easements, etc. This survey also lists improvements and their locations, as well as whether they encroach on a setback line or easement. This survey will also show if improvements and out buildings overlap property lines. It will also describe any bodies of water, roads, or other features.

The Results of a Survey

From this survey, you will get an accurate picture of the property and its attributes in relation to the rest of the area. The description will take the form of metes and bounds, a recorded lot number and location from plat, or a government survey. These surveys will also reflect new or updates utility easements, or if the surrounding geology has changed to any appreciable degree.

Understanding a So-Called Stake Survey

A stake survey provides the same data for the lenders as the location survey, but it shows more detail. While this level of detail is often not required for a mortgage or refinancing, it’s frequently used for improvements or for providing extra information for title insurance policies.

The Importance of a Survey to You

The survey is not just for the use of the lender. You may find that over the course of the years, your neighbor has replaced a fence or added a shed that encroaches on your property. The error is slight enough not to have been noticed, but could be seen with survey equipment. This may affect your refinance procedures.

Property Surveys and Improvements to Real Estate

Property surveys also reflect if the improvements done to a building are within local zoning codes or neighborhood restrictions. If you have made improvements and not checked this information and had a survey done, you could be in violation of local zoning laws. Always get a survey done for your outdoor improvements.