Which financial document is typically required to close a mortgage?

The mortgage note is a crucial financial document required to close a mortgage because it serves as a legally binding contract between the borrower and the lender. This document outlines the terms of the loan, including the amount borrowed, the interest rate, the repayment schedule, and any other conditions pertinent to the loan.

The mortgage note signifies the borrower's promise to repay the loan under the stated terms. Without this document, the lender would not have the legal right to enforce the loan agreement, claim foreclosure in case of default, or proceed with the closing process.

While other documents, such as an insurance policy, home appraisal, and transfer deed, may be important in the mortgage process, they do not hold the same foundational role as the mortgage note itself in the context of closing the mortgage. The insurance policy may protect the property, the home appraisal helps determine its value, and the transfer deed is necessary for ownership transfer, however, the mortgage note is essential for the financial agreement and obligation between borrower and lender.