What is the primary role of a borrower in a loan agreement?

The primary role of a borrower in a loan agreement is to apply for and receive funds in the form of a loan. This role involves submitting a loan application, providing necessary financial information, and ultimately accepting the funds for a specific purpose, such as purchasing real estate or funding a business venture.

The borrower is obligated to repay the loan according to the terms set forth in the loan agreement, which includes details about the interest rate, repayment schedule, and any additional fees. The borrower's application initiates the loan process and sets into motion a series of evaluations, including credit checks and income verification, that help the lender assess the risk of providing the loan.

In contrast, the other roles mentioned are not associated with the borrower's responsibilities. The option describing an individual who provides funds pertains to the lender, not the borrower. The neutral party distributing legal documents refers to a third-party role often involved in closing transactions—not the borrower's function. Title insurance is a responsibility typically managed by the lender or title company, not the borrower. Thus, defining the borrower's role accurately is crucial for understanding the dynamics of a loan agreement.