Which document outlines the terms between the lender and borrower regarding a mortgage?

The correct answer, which is the mortgage note, is critical in outlining the terms between the lender and the borrower regarding a mortgage. This document is a legal agreement where the borrower promises to repay the loan amount to the lender under specified conditions, often detailing aspects such as the principal amount borrowed, interest rates, payment schedule, and any penalties for late payments. It serves as a binding contract, ensuring that both parties clearly understand their responsibilities and obligations under the loan.

Other documents mentioned, such as the purchase agreement, primarily address the terms of sale between a buyer and seller of a property, and the deed of trust functions as a security instrument that secures the mortgage loan by transferring an interest in the property to a trustee for the lender's benefit. Similarly, a lease agreement is focused on renting property rather than financing it, making it unrelated to the terms of a mortgage. Thus, the mortgage note is the key document that encapsulates the lending terms, making it essential for both the lender and borrower in the mortgage transaction.