When you’re a first-time home buyer, it’s hard to tell the difference between what you need, what you don’t need and what’s nice to have. A mortgage valuation survey falls squarely into the “critical” territory—it tells you exactly how much the home you’re buying is worth, as well as any quirks or issues that would make it less worth bothering with.
While you shouldn’t rely solely on the mortgage valuation, it’s an important part of the home buying process. Here’s what you need to know about this type of survey.
What is a mortgage valuation and what does it cover?
When you ask a mortgage lender for a loan, they’ll want to conduct a mortgage valuation survey. This type of land and property survey inspects the home and property to determine how much it’s worth. Both you and your lender will want this survey, because it will help you discover whether the property is worth the amount you’re being asked to pay for it.
Mortgage valuation surveys are also necessary when you want to take out a second mortgage on your home. Maybe you already had it paid off, but the kids are off to college and you’d rather not saddle them with excessive debt. Mortgage valuation ensures that when your lender remortgages your property, both of you have as much leverage as possible.
Why do I need a mortgage valuation?
Here are four reasons to invest in a mortgage valuation survey:
- Find the property lines and boundaries: The obvious reason to get a mortgage valuation survey is to find out where exactly the property lines and boundaries are located. When you buy a home in a well-established or brand-new subdivision, that’s usually less of a problem than when you buy a sweeping property in rural Texas. Either way, getting a survey ensures that you know exactly how large your property is, and where the boundaries lie—even if the results of the survey surprise you.
- Ensure there are no easements: Utility easements are common, especially in suburban Texas—but if you buy acreage away from the cities, you probably don’t want unknown people walking around on your land. Getting a mortgage valuation survey will determine exactly where those easements are located (if they exist) and who has the right to use them.
- Make sure the buildings on the land are yours: Most of the time, the buildings on any given property belong to the owners—but if there’s a clear property dispute, you might find that your next-door neighbor owns the northeast three sevenths of your building. To avoid that headache, get a survey before you buy.
- Look for additional quirks or problems: Finally, mortgage valuation surveys will find other quirks of the property before you sign on the dotted line. You deserve a full, fair and clear picture of the property you’re buying—don’t go without a mortgage valuation survey.
To find out more about mortgage valuation surveys in your area, get in touch with the team at D.G. Smyth & Co., Inc. today.