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

The document that typically outlines the terms and conditions of a loan is the loan agreement. This agreement is crucial as it provides a detailed account of essential elements such as the loan amount, interest rate, repayment terms, and any fees involved. It serves as the binding contract between the lender and the borrower, ensuring that both parties are aware of their rights and responsibilities regarding the loan.

While the loan application gathers information about the borrower and their financial status, it does not contain the specifics of the loan terms. Similarly, a credit report reflects the borrower’s credit history and creditworthiness but does not outline the loan agreement itself. The disclosure statement, although it provides information required under federal regulations, such as the annual percentage rate (APR) and total financing costs, is supplementary to the loan agreement. The primary and comprehensive document regarding the loan terms remains the loan agreement.