Which two documents together constitute what is commonly referred to as a mortgage loan?

• A. Bank statement and check
• B. Promissory note and mortgage (or deed of trust)
• C. Credit memo and sales receipt
• D. Invoice and purchase order

Answer: (B)

Verified step by step guidance

1. Understand the concept of a mortgage loan: A mortgage loan is a type of loan used to purchase real estate, where the property itself serves as collateral for the loan.
2. Identify the two key documents involved in a mortgage loan: The promissory note and the mortgage (or deed of trust).
3. Explain the promissory note: This is a legal document in which the borrower agrees to repay the loan amount to the lender under specified terms, including interest rate, payment schedule, and loan duration.
4. Explain the mortgage (or deed of trust): This document secures the loan by placing a lien on the property, giving the lender the right to foreclose on the property if the borrower fails to meet the repayment terms.
5. Clarify why other options are incorrect: For example, a bank statement and check are unrelated to the legal structure of a mortgage loan, and documents like credit memos, sales receipts, invoices, and purchase orders pertain to other financial transactions, not mortgage loans.