The good news is that with a complete car you get everything. 65/66 Mustang rear end is 57.25", The Granada is 58".
You are also getting 5, 5-lug wheels. That keeps you from having to buy wheels right now.
On the engine, there are a couple choices. You can drop it in "as is" if it runs ok, or you can put it on a stand and strip it down. Put on a 66 waterpump, new timing chain, 65 fuel pump with filter, new oil pump and pickup. Clean it and spray it black. You can probably find a used 4v manifold and a carb, 500 cfm is best, 600 cfm if thats all you can find used. You will need a new gas pedal and linkage. Use a 67 pedal, it has the C4 cable kickdown. The pedal, cable kickdown, linkage and engine mounts are all sold at CJP or NPD.
Im guessing you will spend $600-1200 doing the swap, if you can find used parts, and depending on how far into the weeds you want to go.
The Granada probably has AC and smog. Stripe that all off and go with the minimum.
If it were me, I would do everything else first and do the engine last. Get the rear end, front suspension, steering and brakes sorted. I wouldnt use the Granada spindles on a 65, but you can sell them and look for a set of 65-69 Mustang V8 drum spindles. They are all the same spindle and is what would have come on your car if it were a V8.
Your driveshaft may need to be shortened. If it does, use the Granada driveshaft, it will have the correct u-joints for the rear end, one less thing to worry about.
Start looking for parts now, many of them can be found used and at much less cost than new.