A promissory note is a written agreement between a borrower and a lender that outlines the terms of a loan. In real estate, a promissory note is an essential document that helps formalize the terms of a loan between a borrower and a lender for the purchase of the property. It is a legally binding, written promise from a borrower to repay a loan to their lender. A promissory note is a separate contract from the mortgage itself, and it is a crucial legal document to the mortgage process that holds both the borrower and the lender accountable to mutually agreed terms and conditions. A promissory note for a mortgage will generally include the amount owed, the interest rate, the payment schedule, and the repayment length of time. It is a key piece of a home loan application and mortgage agreement, ensuring that a borrower agrees to be indebted to a lender for loan repayment. Promissory notes provide greater flexibility in financing, allowing both parties to negotiate terms that are more suitable for their needs than traditional mortgage loans. They are legally binding documents that require the borrower to repay the lender for the mortgage loan.