Mortgage loan- how is this?

[working4goodCr]

She currently has bills  like smartphone, car ins, and credit card,  other than usual things like gas, food, and room.  She is not having easy time keeping up her share of bills, I understand.  We help her occasionally. Therefore, someone is lying to her or not doing the job. Last time I talked to her, she was waiting for the closing cost. I guess, she was told that the seller might pay. lol. When we bought our house, we had VA loan and we had minimal down payment. But she does not have such a deal, She did not participate any program, as far as she tells us.

I would truly, truly, be shocked if she gets it. I am hoping that someone has still comonn sense to say NO.

Since she would never listen to me, I would have to let her fall on her face hard. I am her parent ,after all. She did this without talking to us in the first place. She might have talked to her BF's parents, since his mom was so keen on her getting this 5-bedroom house.  But I doubt that they can afford helping her down payment for they have to get out of thier rental property by the nest week. And we sure are not give her money, either, even if we can afford it.

I am watching.

[mamahearts]

They look at much more than just credit scores.  DTI, what funds she has for her down payment (they need a paper trail), her bank statements or verification of deposits, employment history.   If she's struggling now and she manages to eek past the UW (which again, I don't believe this will happen) she's setting herself up for failure.  As a mother I would not be ok with sitting by and watching that happen.  Now is the time to educate her on proper use of credit so she doesn't make huge mistakes that can last for many years if not a lifetime.  We all want instant gratification, especially when we're young.    We don't want to listen to someone tell us no when someone else is telling us yes.  But it's especially important that she learns before she leaps into a huge mistake. 

A few years back before our credit was cleaned up, we got approved for a subprime loan with ridiculous terms. There was no way we could've afforded to stay in that home.  Not only that but we had creditors that we owed money to, if we had not paid them they could've put a lien on the house.  So my husband put his foot down and said not just NO but heck no.  I loved that house, I was so tired of renting... but this past October we closed with great terms on an awesome (way better) house. 

[Yodafer]

Maybe your daughter should post here about her situation to get advice since some of the story is obviously missing and advice cannot be given based on partial information.

I would suggest as a mom to not discuss your daughters personal finances with your son/her sibling.  My mother does this and makes me feel like a second class citizen in my own family.

[rckstrscott]

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@working4goodCr wrote:

She currently has bills  like smartphone, car ins, and credit card,  other than usual things like gas, food, and room.  She is not having easy time keeping up her share of bills, I understand.  We help her occasionally. Therefore, someone is lying to her or not doing the job. Last time I talked to her, she was waiting for the closing cost. I guess, she was told that the seller might pay. lol. When we bought our house, we had VA loan and we had minimal down payment. But she does not have such a deal, She did not participate any program, as far as she tells us.

I would truly, truly, be shocked if she gets it. I am hoping that someone has still comonn sense to say NO.

Since she would never listen to me, I would have to let her fall on her face hard. I am her parent ,after all. She did this without talking to us in the first place. She might have talked to her BF's parents, since his mom was so keen on her getting this 5-bedroom house.  But I doubt that they can afford helping her down payment for they have to get out of thier rental property by the nest week. And we sure are not give her money, either, even if we can afford it.

I am watching.

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I think you have a misguided opinion of where the mortgage industry is right now. There are pretty finite guidelines to get approved for a loan these days. Although everyones situation is different, I don't think you have to worry about 'common sense to say no' -- I am pretty sure almost every lender will say no. If a lender says yes, it means she met their qualifications, and in that case, there isn't much you can do because she is an adult.

-scott

[MissMia75]

I wish your daughter much success.  I do believe it is possible as my niece makes about $18k and has no savings but her 401k has about $3600 in it and she was approved for a loan up to $88,500.  I saw her approval and she is closing next week.  It seems as though she is credit worthy enough for them to extend a loan to her regardless as to how much money she earns per year.  With all of the creative financing such as the ARM loans she may have qualified for one of those products giving her a payment of that amount.  I must say there is more to this that we do not know about.

[getmycreditright]

I need whatever kind of loan she got.

[LondonMassey]

I'm putting an offer in on a house tomorrow (first house just went under contract, sadly) and I'm pulling in $1200/mo in pay plus $400 in child support.  The home I'm attempting to purchase is at 60k, the loan amount I was approved for is 60k, my offer... $62,500 and I'll cover closing costs.  I actually went through a homebuyer assitance course and am able to get 3x's what I pay upfront (up to matching 5k), so I'm paying 5k and they match to 15k.  This will make my payments plus tax and insurance just over $300.  My actually mortgage payment?  $215 - I have other household income that varies from time to time so I didn't have them add that into anything, but with that income, I have paid rent and utilities consistently. 

Why don't you have more faith in your daughter?  Perhaps she isn't telling you the whole story because she can sense your negativity towards her.  I haven't told my parents much about my plans because my mother degrades me just as you are doing to your daughter.  I know I can handle it.  I know that the amount I'll save each month from paying a mortgage at today's current price and interest rate will allow me to save in case something needs repaired.  I plan on doubling up on my mortgage payments when I have a secure reserve in place.  I plan on paying my mortgage biweekly to cut down on interest... and I also plan to put approximately half of my tax return each year towards the principle, which will allow me to pay the house off in 8 years.  Have I told my parents?  Nope.  Why? Because I realize whatever I do will make no difference in the thoughts towards me.  They don't see a single parent of 3 doing anything to better themself.  If I screw up, I screw up (not exactly sure how since I've rented for 11 years and always paid rent on time, never been evicted, and always maintained a roof - shelter has to be paid for and I'll be paying for what I own), if I don't screw up... I don't.  It's the reality I will have to live with or celebrate. 

[rckstrscott]

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@LondonMassey wrote:

I'm putting an offer in on a house tomorrow (first house just went under contract, sadly) and I'm pulling in $1200/mo in pay plus $400 in child support.  The home I'm attempting to purchase is at 60k, the loan amount I was approved for is 60k, my offer... $62,500 and I'll cover closing costs.  I actually went through a homebuyer assitance course and am able to get 3x's what I pay upfront (up to matching 5k), so I'm paying 5k and they match to 15k.  This will make my payments plus tax and insurance just over $300.  My actually mortgage payment?  $215 - I have other household income that varies from time to time so I didn't have them add that into anything, but with that income, I have paid rent and utilities consistently. 

Why don't you have more faith in your daughter?  Perhaps she isn't telling you the whole story because she can sense your negativity towards her.  I haven't told my parents much about my plans because my mother degrades me just as you are doing to your daughter.  I know I can handle it.  I know that the amount I'll save each month from paying a mortgage at today's current price and interest rate will allow me to save in case something needs repaired.  I plan on doubling up on my mortgage payments when I have a secure reserve in place.  I plan on paying my mortgage biweekly to cut down on interest... and I also plan to put approximately half of my tax return each year towards the principle, which will allow me to pay the house off in 8 years.  Have I told my parents?  Nope.  Why? Because I realize whatever I do will make no difference in the thoughts towards me.  They don't see a single parent of 3 doing anything to better themself.  If I screw up, I screw up (not exactly sure how since I've rented for 11 years and always paid rent on time, never been evicted, and always maintained a roof - shelter has to be paid for and I'll be paying for what I own), if I don't screw up... I don't.  It's the reality I will have to live with or celebrate. 

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AMEN!