What document outlines the terms and conditions of a mortgage?

The Promissory Note is the document that outlines the terms and conditions of a mortgage. It is a legally binding agreement in which the borrower promises to repay the borrowed amount under specified terms, including the loan amount, interest rate, repayment schedule, and any other relevant conditions. This document serves not only as a promise to repay but also as evidence of the debt, giving the lender the right to seek repayment through legal means if necessary.

In contrast, the Closing Disclosure provides detailed information about the final loan terms and all closing costs associated with the mortgage, but it does not outline the core terms of the loan itself. The Purchase Agreement is a contract between the buyer and seller regarding the sale of the property, including terms related to the transaction, but not the mortgage specifically. The Loan Estimate is an initial disclosure that gives borrowers an overview of the estimated costs and terms associated with the mortgage application but is not the binding document that stipulates the specific terms of the loan like the Promissory Note does.