Actually, I dont know how much rent she was previously paying on her other rental house.
To be fair, she does earn between $70-$75K/year and does have a healthy amount of money stashed in a money market – but that money is the child support for her kid. She saves every dime so that he’ll have plenty of dough for college.
The “wrinkle” is that a hefty portion of her income is tips. And apparently Mr. UnderWriter doesnt like that.
The thing I most object to in this entire situation (besides the atrocious house) is that she doesnt seem to want to learn about the process and just wants her realtor to “take care of her.” Ugh!
When I ask questions, she does not know the most basic answers – e.g. “You are getting a home warranty, right?” (Answer: “what is a home warranty?”). I kid you not.
I bought a townhouse in 2003 on a lower salary and a lot of nerve. I ended up selling it in 2006 and making a profit. I also tried to be as informed as possible and learned a lot in the process.
So, in my opinion, trying to buy a house when one is….shall we say “informationally retarded” is almost worse than being financially stupid.
