To determine if a property has a deed for a mortgage loan application, verify the deed records at the county recorder’s office, confirm the deed type (e.g., warranty or quitclaim), check for liens or encumbrances, and ensure the legal description matches the mortgage documents. Title insurance is also critical to mitigate risks.

Valid deeds are foundational to mortgage approvals as they establish legal ownership and clear title. The Consumer Financial Protection Bureau (CFPB) reports that 2-3% of mortgage applications are denied due to title issues, often stemming from unrecorded liens, errors in deed transfers, or missing documentation. For example, a 2022 CFPB study found that 15% of title disputes involved properties with deeds that could not be located or were improperly recorded. Additionally, the National Association of Realtors (NAR) highlights that 20% of title disputes involve missing or incorrect deeds, costing buyers an average of $15,000 in legal and resolution fees. Lenders require deeds to assess collateral value and ensure compliance with regulations like the Real Estate Settlement Procedures Act (RESPA). Without a valid deed, the mortgage agreement may be deemed unenforceable, exposing both borrowers and lenders to financial and legal risks. Thus, verifying deed accuracy through county records, title searches, and professional title insurance is essential to avoid delays, additional costs, or loan denials.