1. Home
  2. /
  3. Learning Center
  4. /
  5. Legal Aspects of Land...
  6. /
  7. Understanding The Basics Of...

Understanding The Basics Of Mortgage Loan Inspections

If you’re buying a home or property in Maine, you may have heard of a Mortgage Loan Inspection (MLI) or Mortgage Inspection Sketch (MIS), and be wondering what this is – and why you would need an MLI/MIS from a surveyor. In this blog, we’ll discuss everything you need to know. 

What Is A Mortgage Loan Inspection?

A Mortgage Loan Inspection (MLI) also called a Mortgage Inspection Sketch (MIS) is done by a surveyor to assess the boundaries of the property and compare them to the legal description contained within the property deed.

Basically, it’s an inspection that a surveyor will do of the property to assist the buyer, the lender, and the title attorney with evaluating the asset being purchased, helping eliminate some of the risks involved with buying a new home and getting a home loan.

With this inspection, your surveyor will define the approximate boundaries of the property, and look for any errors, incorrect information, or other problems with the property. Some common findings from an MLI include:

  • Fences or walls that cross property lines
  • Trees or gardens that cross property lines
  • Additional buildings (like sheds) that cross property lines 
  • Buildings that violate zoning setbacks or deed covenants 
  • Driveways that encroach on neighboring properties
  • Defective property descriptions
  • Determines if an area is part of the FEMA Special Flood Hazard Area (SFHA)

Why Is A Mortgage Loan Inspection Important?

An MLI or MIS is important because it helps you spot potential issues with the property you’re interested in purchasing during the preliminary process of buying a home. 

An MLI/MIS can be used to look for major violations of property lines and other potential concerns during the due diligence period and allows a buyer to have the opinion of a land surveying professional in hand to evaluate the property more accurately and see if it will be a good investment. 

When Do I Need A Mortgage Loan Inspection?

Mortgage loan inspections are typically required by lenders and title attorneys as part of the process of closing on a home, as this helps evaluate mortgage collateral. Additionally, this may help waive the survey exceptions of a title insurance policy.

In addition, a prospective buyer can hire a surveyor on their own to perform an MLI/MIS while they are evaluating a property. For example, if you’re concerned that a shed or fence on the property appears to cross the property boundary, you can hire Herrick & Salsbury to perform an MLI/MIS and get a comprehensive assessment of the property boundaries and other such details.

Contact Herrick & Salsbury Today To Get A Mortgage Loan Inspection

If you need an MLI or MIS in Maine, Herrick & Salsbury is here to help. Get in touch to learn more about mortgage loan inspections, and see how you can benefit from working with an experienced surveyor for an MLI/MIS. To get started, you can contact us online or give us a call at 207-667-7370.