Which document typically outlines the terms of a mortgage loan?

The mortgage note is a crucial document in the process of securing a mortgage loan. It serves as a written promise by the borrower to repay the loan amount under the agreed terms. This document outlines vital details such as the loan amount, interest rate, repayment schedule, and the consequences of default.

In addition to being a straightforward promise to pay, the mortgage note is legally binding, meaning that if the borrower fails to meet the obligations stipulated in the note, the lender has the right to pursue legal action or foreclosure. The specifics included within the mortgage note make it an essential document for both parties involved in the transaction.

The other options do play significant roles in real estate transactions, but they do not encapsulate the specific terms of the mortgage loan like the mortgage note does. The purchase agreement outlines the terms of the sale of the property itself, the loan estimate provides an overview of the loan terms and costs but does not serve as a binding agreement, and the deed of trust is used to secure the loan by giving the lender a claim against the property but does not detail the repayment terms. Thus, the mortgage note is the document that directly establishes the borrower's obligations regarding the mortgage loan.