FinancingMortgage_instrumentsMEDIUM
A loan processor is checking which closing document contains the principal amount, the interest rate, the payment dates, and the repayment term. Which document should the processor review first?
Correct Answer
C) The promissory note because it states the debt terms
The promissory note sets out the core debt terms, including the amount borrowed, interest rate, payment schedule, and maturity. That is the document the processor should review first for repayment details.
Answer Options
A
The deed because it identifies the granteeB
The mortgage because it transfers ownershipC
The promissory note because it states the debt termsD
The title policy because it insures repaymentWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Related Topics & Key Terms
Key Terms:
promissory_noteloan_termsinterest_rateclosing_file
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