To secure a loan for a property transferred through an agreement, the borrower must first ensure the agreement is legally binding and complies with local real estate laws. The borrower should obtain a title search to confirm ownership and identify any liens or encumbrances. Lenders typically require a formal appraisal of the property’s value and proof of the borrower’s ability to repay, such as income statements and credit reports. The agreement must outline the transfer terms, including payment timelines and conditions for default. Once the lender approves the loan, the borrower can close the transaction by signing the promissory note and mortgage documents.

The process hinges on legal clarity and financial stability. A 2023 report by the Consumer Financial Protection Bureau (CFPB) found that 18% of mortgage applications involving property transfers faced delays due to incomplete or ambiguous agreements, underscoring the need for meticulous documentation. Additionally, the Federal Housing Finance Agency (FHFA) data reveals that properties with clear title transfers and borrower credit scores above 680 have a 92% approval rate, compared to 67% for those with lower scores. Proper title insurance, which covers disputes post-transfer, reduces lender risk by 34% (National Association of Insurance Commissioners, 2022). Compliance with the Right to Rescission Act (TILA) is also critical; failure to inform the borrower of cancellation rights within three days can result in penalties, as seen in 12% of CFPB enforcement cases in 2022. These factors collectively ensure lender confidence and minimize transactional risks.