Which document outlines the terms and conditions of a mortgage loan?

The correct answer is the promissory note. This document is a legal contract in which the borrower agrees to repay the loan amount to the lender under specified terms, including the interest rate, repayment schedule, and the consequences of default. It serves as a financial agreement that clearly outlines both the obligations of the borrower and the rights of the lender, thus forming the foundation of the loan process.

In contrast, the other documents mentioned serve different purposes. The borrower's agreement might refer to a variety of documents but does not specifically encapsulate the comprehensive terms of the loan. A credit report provides the lender with the borrower's credit history and financial health, which may inform the lending decision but does not outline loan terms. Lastly, the closing statement, also known as the HUD-1 Settlement Statement, details the final closing costs and disbursements associated with a real estate transaction but does not specifically lay out the terms of the mortgage loan itself.