What document outlines the amount borrowed and the terms of repayment for a loan?

The correct choice is the promissory note because it is the specific document that details the borrower's obligation to repay the loan, including the amount borrowed and the terms of repayment. A promissory note serves as a legal contract between the borrower and the lender, specifying key information such as the interest rate, payment schedule, and maturity date. This document is critical in real estate transactions as it legally binds the borrower to the repayment terms agreed upon, ensuring that both parties understand their rights and responsibilities.

The other documents mentioned play different roles in a real estate transaction. For instance, a contract typically refers to an agreement between parties regarding the sale of property but does not specifically address the terms of a loan. A mortgage deed, on the other hand, establishes a security interest in the property itself to guarantee repayment of the loan but does not contain the repayment terms. Lastly, a loan application is the initial document submitted by a borrower to a lender to request financing, but it does not specify the loan terms agreed upon after approval. Therefore, the promissory note is the most relevant document addressing the specifics of borrowing and repayment.