While beginning the process of lot division I knew we needed to let our current mortgage lender know that we planned to divide off part of the lot. Our loan with Guild Mortgage is for the full 5,000 square lot and to legally divide the lot we needed to make sure the current value without the back half of the lot was enough to satisfy the lender.
Once we contacted the Guild the first step was to send in a survey of the new lot. The survey took a few weeks and cost around $1,600. After the survey was submitted Guild sent an appraiser out to the house to determine the value of the home without the back half of the lot. After the appraisal came back Guild let us know that to remove the new lot from the loan we would need to pay in $12,000. Once the check was written we now own the back lot free and clear.