What document is typically used to outline the terms of a mortgage?

The deed of trust is the correct document used to outline the terms of a mortgage. This legal instrument secures a loan by transferring the title of the property to a trustee, who holds it on behalf of the lender until the borrower repays the loan. It specifies the terms of the loan, including the repayment schedule, interest rate, and the rights and obligations of both the borrower and the lender.

In contrast, a purchase agreement is a contract between the buyer and seller for the sale of the property, outlining the terms of the sale but not the details of the financing. A title report provides information on the ownership of the property and any liens or claims against it, but it does not detail the loan terms. Lastly, the closing statement summarizes the financial transactions involved in the closing process, including fees and payments but does not focus specifically on the mortgage terms. Therefore, the deed of trust is essential for establishing the framework of the mortgage agreement.