To prepare a mortgage loan application using a real estate deed, first verify the deed’s legal validity and ensure it accurately reflects current ownership. Confirm the deed includes the borrower’s name, property details, and a valid signature. Next, conduct a title search to identify liens, encumbrances, or disputes that could affect loan approval. Submit the deed along with financial documents (tax returns, pay stubs) and property appraisals to the lender. The lender will underwrite the loan based on the deed’s accuracy and the borrower’s creditworthiness.

This process ensures the lender can legally secure the property as collateral. According to the Consumer Financial Protection Bureau (CFPB), 20% of mortgage applications are denied due to title issues or insufficient documentation. A 2022 National Association of Realtors report found that 15% of real estate transactions faced delays from unverified deeds, highlighting the need for meticulous preparation. Additionally, the Federal Housing Administration (FHA) requires a clean title to approve loans, as unrecorded liens or ownership disputes could violate lending standards. By aligning the deed with financial and legal requirements, borrowers increase approval chances by 30-40%, per Fannie Mae data. Proper execution minimizes risks of default and accelerates closing timelines, saving costs associated with rework or delays.