Which of the following is typically required by lenders as a condition of the loan?

Lender's title insurance is generally required by lenders as a condition of the loan because it protects the lender's interest in the property that is being financed. This type of insurance covers the lender against any potential claims or defects in the title that could arise after the closing of the loan. If there are issues such as liens, encroachments, or disputes about property ownership that were not discovered during the title search, the lender's title insurance helps ensure that the lender's investment is safeguarded.

In contrast, owner's title insurance, while important for protecting the homeowner's interests, is not necessarily a condition imposed by lenders. Mortgage insurance is typically required when the borrower makes a low down payment, but it is not universally required by all lenders. Lastly, a property appraisal is often conducted to assess the value of the property, ensuring that the lending amount does not exceed the property's worth, but it is not strictly considered a requirement like lender's title insurance. Thus, lender's title insurance is the most essential requirement from the listed choices for protecting the lender's financial stake in the transaction.