To obtain a property certificate for a new home loan application, follow these steps: First, contact a title company or abstractor to request a title search and property survey. Provide the property address and loan details. The title company will research public records to confirm ownership, identify liens, encumbrances, or disputes, and issue a certificate. Next, review the certificate for accuracy and submit it to your mortgage lender. The lender will use it to assess loan eligibility and ensure the property is free of legal issues. If any defects are found, resolve them before finalizing the loan.

This process is critical because a property certificate safeguards both the borrower and lender by verifying legal ownership and detecting potential risks. According to the American Land Title Association (ALTA), title searches prevent over 90% of financial losses from undetected title defects. Data from the Federal Housing Administration (FHA) shows that 1-2% of home purchases involve title disputes, often due to errors in public records or prior ownership claims. Title insurance, typically required by lenders, covers costs to resolve such issues, averaging $500-$1,000 per transaction. Additionally, a 2022 report by CoreLogic found that 15% of U.S. properties had unresolved title issues, emphasizing the need for thorough certification. Without a property certificate, lenders may deny loans or charge higher interest rates due to perceived risk. Thus, the certification ensures compliance with underwriting standards and mitigates financial exposure for all parties involved.