Which document is typically used to secure a mortgage loan?

The Deed of Trust is the correct document that secures a mortgage loan. In the context of real estate transactions, a Deed of Trust establishes a legal relationship between the borrower, the lender, and a third party known as the trustee. When a borrower takes out a mortgage to purchase a home, they grant the lender a security interest in the property, which is represented by the Deed of Trust. In essence, this document allows the lender to take possession of the property if the borrower defaults on the loan, thus providing the lender with assurance that they will have recourse to recover their investment.

Understanding this function is crucial, as it differentiates the Deed of Trust from other important documents involved in the mortgage process. For instance, a Promissory Note outlines the borrower's promise to repay the loan but does not provide security against the property. The Purchase Agreement is the contract between the buyer and seller regarding the sale terms of the property, and it doesn't serve as a security instrument for the lender. Likewise, the Loan Application is a document submitted by the borrower to the lender containing necessary financial information but does not provide any security for the loan itself. This distinction highlights the vital role of the Deed of Trust in the mortgage process.