đź’Ľ What Is a Mortgage Survey in Real Estate?

A mortgage survey—also called a loan survey—is a simplified property survey used by lenders during real estate transactions. It confirms the property’s basic features, visible improvements, and potential issues that could affect loan approval, such as encroachments or zoning conflicts.

How a Mortgage Survey Works

A mortgage survey is typically required by lenders before closing on a home. A licensed surveyor inspects the property and prepares a report showing the home's placement, visible improvements, and any issues that may affect ownership or financing.

A mortgage survey typically includes:

  • Approximate property boundaries
  • Location of the home, garage, and visible structures
  • Driveways, fences, sheds, and additions
  • Possible encroachments
  • Easement locations
  • Zoning or setback concerns
  • Flood zone indication (if applicable)

A mortgage survey is less detailed than a boundary survey but provides enough information to protect lenders from risk.

Why Mortgage Surveys Matter

For Buyers:

  • Identifies potential issues before closing
  • Confirms structures are where they should be
  • Helps avoid buying a property with encroachments
  • Supports lender and title insurance requirements

For Lenders:

  • Ensures the property securing the loan is accurately represented
  • Reduces risk of boundary or improvement disputes
  • Verifies that the home complies with zoning and setback guidelines
  • Helps prevent financing of problematic properties

Example of a Mortgage Survey in Action

A buyer is closing on a home. The lender orders a mortgage survey, which reveals:

  • A fence that slightly crosses the property line
  • A shed built close to—but not crossing—a setback
  • No major encroachments or legal issues

The lender approves the loan. The buyer is made aware of the minor fence issue, which can be resolved through negotiation or future adjustments.

Why Mortgage Surveys Matter for FSBO Sellers

FSBO sellers benefit from understanding mortgage survey results because buyers' lenders often rely on them before closing.

  • Helps prepare for lender or title company questions
  • Prevents surprises during underwriting
  • Makes your listing more transparent and buyer-friendly
  • Reduces the risk of closing delays due to survey findings

Sellers with clear property documentation often negotiate with more confidence.

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