Which element is commonly included in the mortgage loan closing process?

In the mortgage loan closing process, the appraisal of the property is a critical component as it helps determine the fair market value of the property being purchased. Lenders require an appraisal to ensure that the value of the property is sufficient to secure the loan amount being requested by the borrower. This protects both the lender and the borrower by confirming that the investment is sound and that the property is worth the amount being financed.

An appraisal typically involves a professional appraiser evaluating the property's condition, features, and location, comparing it with similar properties that have recently sold in order to establish its fair market value. This step is essential because it helps mitigate the risk for the lender and ensures that the borrower isn’t overpaying for the property they wish to purchase.

Other options such as legal representation of the borrower only, inspection of adjacent properties, and preparation by the seller's agent only do not reflect common or necessary elements in the mortgage loan closing process. Legal representation is usually provided for both parties in the transaction, a property appraisal is specific to the property being financed rather than adjacent properties, and preparation responsibilities are more collaborative rather than limited to one party.