Throughout the closing process you might be asked to purchase a Mortgage Loan Inspection. Certain title companies require a Mortgage Loan Inspection (MLI) while others do not. Your lender or title company may ask if you want to purchase one, so what does this mean?
A MLI determine if a dwelling or on-site improvement is compliant with the municipal or local building setback requirements at the time of construction. It furthermore determines if on-site improvements used as loan collateral, horizontally scale in or out of a Special Flood Hazard Area (SFHA), according to FEMA’s Flood Insurance Rate Maps (FIRMs).
So how is this different than a boundary survey? A boundary survey is much more of a financial burden, albeit well worth it if you’re planning to subdivide, renovate or build. A boundary survey determines a parcel’s property lines based on original record documents which created the parcel and abutting parcels. This survey will actually show you the rights of way and easements, encroachments, applicable appurtenances, line of occupation and area. Most cities/towns require a survey as acceptable forms for permitting, however, a few accept a MLI.