Which document is essential for securing a loan on real estate in Delaware?

In Delaware, a mortgage is the essential document for securing a loan on real estate. A mortgage acts as a legal instrument that establishes a lien on the property in favor of the lender. This means that if the borrower defaults on the loan, the lender has the right to foreclose on the property to recover the outstanding balance. The mortgage specifies the terms of the loan, including the interest rate, payment schedule, and consequences of default.

While a deed of trust is another method often used in various states for securing loans, it is not commonly utilized in Delaware. A promissory note accompanies a mortgage and outlines the borrower's promise to repay the loan, but it does not create a lien on the property itself. A lease agreement relates to rental arrangements rather than securing a loan, making it irrelevant in this context. Therefore, the mortgage is the crucial document required to secure financing when purchasing real estate in Delaware.