Which document outlines the terms of a mortgage loan?

The promissory note is the document that explicitly outlines the terms of a mortgage loan. It serves as a written promise from the borrower to the lender, detailing the amount borrowed, the interest rate, the repayment schedule, and any other conditions related to the loan. This legal instrument is critical because it establishes the borrower's obligation to repay the loan under the specified terms.

In contrast, the loan application collects the borrower's financial information but does not describe the terms of the loan itself. The deed of trust, while related to the mortgage, serves as a security instrument that provides collateral for the loan by placing a lien on the property. Lastly, the appraisal report evaluates the property's value but does not pertain to the loan's terms. Each of these other documents plays an important role in the mortgage process, but it is the promissory note that directly outlines the specifics of the mortgage loan agreement.