Debt-to-Income Ratio
The ratio of a borrower's monthly debt payments to his or her monthly gross income. Lenders use this ratio to assist them in determining how much to lend.

Deed
The legal document conveying title to a property.

Deed of Trust
The document used in some states instead of a mortgage; title is conveyed to a trustee.

Default
Failure to make payments on a debt/liability in accordance with the payment schedule required by the lender, and/or failure to meet other terms and conditions of the loan.

Deferred Interest
Accrued but unpaid interest, occurring with Adjustable Rate Mortgage loans when a payment remittance does not cover the full amount of interest due for a given period.

Delinquency
Failure to make mortgage payments when mortgage payments are due.

Deposit
A payment made to prove that a buyer is serious about making a given transaction. An earnest money deposit is money a buyer gives to a seller to purchase to prove that he or she is serious about buying the house. It may also be known as a 'good faith deposit.'

Depreciation
The decline in value of an asset over time.

Disclosure Statement
A set of documents given to the applicant that provide specific information about loan terms and conditions and a summary of estimated costs. Additional disclosure statements describe the features of each adjustable rate loan program in which the applicant has expressed an interest.

Dividend and Interest Income
Dividend income is generally a share of a corporation's profit that is distributed to shareholders and is reported on IRS form 1099-DIV. Interest income is generally income earned from bonds or from investment or savings accounts and is reported on IRS Form 1099-INT.

Document
An original or official paper relied upon as basis, proof, or support of anything else. Also known as an 'instrument.'

Donor
A person who gives a gift.

Double Escrow
A term describing two concurrent escrows on the same property having the same party as buyer and seller of the property.

Down Payment
The portion of the purchase price a buyer pays, in cash, at the time the loan funds.

Due-on-Sale Provision
A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.

Dwelling Coverage
Dwelling coverage protects your house and any structures attached to it, like the garage or screened porch. Any materials on your property that are being used to expand or repair the house, such as lumber being used for an addition, would also be covered.