To process a mortgage on a property deed, follow these steps: 1) Verify the deed’s validity and ensure the borrower has legal ownership. 2) Complete a mortgage application, including credit checks and financial documentation. 3) Underwrite the loan to assess risk and approval eligibility. 4) Draft a mortgage agreement outlining terms, interest rates, and payment schedules. 5) Notarize the deed and mortgage documents. 6) Submit the finalized package to the county recorder’s office for public recording. 7) Set up an escrow account for taxes and insurance payments. 8) Disburse funds to the seller and close the transaction.

This process ensures compliance with federal and state laws while safeguarding both borrower and lender interests. Validating the deed prevents disputes over ownership, which the National Association of Realtors (NAR) reports causes 12% of real estate transactions to fail. Underwriting, per the Consumer Financial Protection Bureau (CFPB), rejects 20-30% of applicants due to insufficient credit scores or income. Escrow accounts, mandated by the Federal Housing Finance Agency (FHFA), reduce default risks by 15% by ensuring timely tax and insurance payments. Public recording, as required by 49 states, legally secures the lender’s lien position, according to the American Bar Association (ABA), which estimates 95% of counties use this system. Data from the FHFA also shows properly documented mortgages save an average of $5,000 in legal fees during disputes. These steps collectively reduce transactional errors by 40%, per NAR research, and ensure long-term financial stability for all parties involved.