What must occur before the Swansons can finalize their mortgage loan with Acme Savings?

Before finalizing a mortgage loan, it is crucial to ensure that the property in question is properly evaluated and all ownership-related concerns are cleared. An appraisal is necessary to determine the fair market value of the property, which ensures that the lender is not lending more than the property is worth. This protects the lender’s investment and ensures that the Swansons are borrowing an appropriate amount based on the property's value.

Additionally, obtaining a title report is essential as it reveals any liens, encumbrances, or ownership issues associated with the property. This information is vital for both the lender and the Swansons, as it ensures that the title is clear and that they will have rightful ownership of the property after the loan is finalized.

Therefore, both the appraisal and the title report are critical steps that must be completed before the Swansons can successfully close on their mortgage loan with Acme Savings. Together, they help safeguard both the lender's and borrower's interests in the transaction.