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Your lender may require you to get a survey of the property to determine its boundaries and check for encroachments - structures, such as buildings or fences, that cross the property line. Either you or your neighbor can be the one who's encroaching on the other's property. You may be able to deal with an encroachment by getting an easement in which the encroached-upon party grants permission for the encroachment. In some cases, however, you might have to tear down the encroaching structure.
Ask whether the seller had his property surveyed in the past. You may be able to save some money by having this survey updated or (if your lender will accept it) submitting it with an affidavit from the seller saying he hasn't made any changes to the property since the survey.
