Gift Letter

Definition

A written statement signed by the donor confirming that money given to a homebuyer for a down payment is a gift, not a loan.

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Home Affordability

Lenders require this to ensure the money doesn't add to the borrower's debt load.

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28/36 Rule

A common standard used by lenders to determine how much credit to extend to a borrower.

Appraisal

An unbiased professional opinion of a home's value.

Appraisal Gap

The difference between the price a buyer agreed to pay for a home and the home's appraised value.

Closing Disclosure

A five-page form that provides final details about the mortgage loan you have selected.

Closing Disclosure (CD)

A five-page form that provides final details about the mortgage loan you have selected.

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This software is for simulation and planning purposes only. Outputs are estimates based on your inputs and do not constitute professional financial, legal, or tax advice. Always consult a qualified advisor before making business decisions.