You may be wondering why a gift letter is important when buying your first home. A lot of people are confused by the difference between loans and gifts, so I want to clarify that for you. With a loan, you have to pay back what was borrowed at an agreed upon interest rate with each payment typically starting around 30 days after receipt of money from the lender (this doesn't include fees). On top of this monthly cost any other bills can pile up like mortgage insurance premiums which vary based on credit rating as well as property type or hazard coverage if required in certain areas where there's riskier natural disasters like earthquakes etc... There are also closing costs but those will depend on who processes them and how they do it; some lenders allow borrowers.