Frequently Asked Questions About Mortgage Locations

Mortgage locations are usually requested – and sometimes required – by your mortgage lender or title insurance company when you buy a home to verify that the property they’re lending you money to purchase is as described in legal documents and is suitable as collateral for your mortgage loan.

Typically if you are financing your home purchase, your lender will require a mortgage location as a condition of the mortgage. The mortgage lender wants legal documentation of the real estate they will be holding an interest in, what structures are on the property, and where they are in relation to the property lines.

Because mortgage locations are an important part of the home buying process, buyers and sellers oftentimes have questions about them. Here are some of the most frequently asked questions about Mortgage Locations. 

What are mortgage locations?

Mortgage locations show the location of major buildings on your property such as the house, garage, and sheds. In addition, it shows whether your property encroaches on any neighboring properties or easements. Likewise, these surveys determine whether any neighboring properties encroach on your property.

Why are mortgage locations important?

A mortgage location is important because it offers “substantial proof is submitted to the mortgage lender and/or title insurer that the building(s) and/or other improvements are actually located on the land covered by the legal description” (Ohio Administrative Code 4733-38-01)

This can help prevent any disputes or issues related to the property’s ownership or use, which could affect the value of the collateral.

Who pays for the mortgage location?

In a real estate transaction, the borrower/home buyer typically pays for the mortgage location as part of the closing costs associated with the mortgage loan, but as with most things real estate related, anything is negotiable. 

What information is included in a mortgage location?

A mortgage location typically includes a drawing of the property, showing buildings and other improvements. It may also include information on easements, encroachments, and any other issues that could affect the property’s use or value. 

The land surveyor uses the legal description provided by the title company to confirm that what is happening on paper is happening in reality. The land surveyor is the eyes and ears for the title and lending clients to give them that picture that confirms that what is about to transfer on paper is what is actually transferring in real life.

Is a mortgage location the same as a boundary survey?

A mortgage location is an important tool for securing title insurance and a mortgage loan, but it is not a boundary survey. It focuses specifically on the location of existing property improvements (structures, drives, etc), as well as any issues related to its use as collateral for a mortgage loan.

Other types of property surveys may focus on different aspects of the property, such as boundary and topographic surveys. If a homeowner is looking to identify property lines, a boundary survey is the type of survey they should inquire about.  A boundary survey is governed by a completely different set of survey standards and may be relied upon for construction such as home additions, fence installation, or adding other improvements.  A mortgage location cannot be relied upon for those purposes.


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