4.30.2014

Unbelievable...

We got an email today asking us to write a letter to the lender justifying our decision to downsize.

Justifying.

Um, I didn't think I needed a reason to obtain a smaller loan and move to a smaller place.  Apparently the mortgage lender thinks otherwise.  The irony in this is that if we had wanted a larger place with a higher mortgage they would have given it to us without blinking or asking questions.    I think it's a sad reflection on our society that we question someone's wanting to scale down and own less.

So I wrote the following letter:

To Whom it May Concern,

   We are choosing to downsize for the following reasons:

  • Our oldest daughter has Down Syndrome and is aging out of the school system this year.  We would like to be able to continue her education and provide opportunities for travel.
  • Our youngest son is home schooled, along with our oldest daughter, and we would like to provide him with opportunities to learn that can only come from traveling. 
  • With two children out of the nest, we no longer need a four bedroom home.
  • It is financially SMART to live in a space that only requires ONE paycheck to cover ALL living expenses. 
  • We would like to put more money into savings.
  • We are looking to live smarter, smaller, and 100% debt free.
Sincerely,

The Goins


I find it sad that despite a perfect credit score and near to no debt, I am having to justify what in my opinion, looks like a common sense decision.

Less is more.


25 comments:

  1. I'm not that surprised. When we sold our last house it was already paid off and we made a little profit. When it was time to buy this house they just couldn't believe that we were putting the whole amount down instead of taking out a big loan with the low interest rate. We all have to do what is right and prudent for us. You won't regret it. :)

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    1. I know this is the right choice for us- we want to live more, see more, do more, not just live in a bigger house. Our way of thinking is so warped compared to other mindsets. I find that the older I get the more I crave simplicity.

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  2. You should email Dave Ramsey, this is just the kind of thing he would love to go on about!

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    1. That is a great idea! I bet he would be interested in this, but I think I will wait until after we close, lol!!

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  3. That is the STUPIDEST request I have ever heard of... I would sure like to know how your mortgage broker would justify your having to answer that question. I have had my own frustrations with renting a home in Texas, as we were treated like 3rd class citizens even though we have owned a much bigger home for 15 years and have excellent credit. It's just dumb.
    In any case, I wish you much happiness in your new home... from the new floors to all the other improvements you make, I am sure it will become a lovely background for making memories and easing the financial burden for your beautiful family. THAT'S the American dream, girl!
    G Woolwine
    Queen Creek, AZ

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    1. Yep, we are very excited! I know we were questioned when we bought this house, but by the builder. Was it big enough? No media room?? Only 2200 sq ft?? I don't get it!

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  4. Tricia, yes....unbelievable! But it doesn't surprise me. The day and time we are living in teaches and preaches (the world system) to be hocked up, indebted to our eyeballs and etc. I could go on......the whole system is backwards! Good for you and your family! I know of several situations (including my own in the last year) where one downsized...paid off debt etc. It is the BEST and the RIGHT thing to do! My husband and I did just that....we sold our dream home built in 1996 (which i loved) but we both knew it was time. We are renovating a little cottage we paid cash for and are very happy! Blessings to you and your family.....this was a wonderful and much needed post for those to see what is really going on in this world. Roxie

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    1. It is a very backward system! I just can't see being questioned for making smart choices. I feel like I fell down the rabbit hole!

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  5. it really is sick in my opinion and just speaks to the world we are living in that you had to do this. just ridiculous. when we went in to buy our current house the bankers were trying to get us to borrow 110%. yes 1-1-0 percent. i'm still scratching my head over that. um yeah my husband's favorite word is budget and we try to live within our means...didn't happen. the bankers were incredulous...like how dare you wont take our money. I love the reasons you posted above. So glad I found your blog :)

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    1. That is insane!! We were given some grief too as to the amount we are putting down. This house is way under our "approved loan amount" so we are going to make it as financially comfortable as we can by putting down as much as we can. The goal is to be mortgage free in just a few years :)

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  6. Having just gone thru this same process last month I was surprised by some of the questions I was asked. Who was going to live with me in the house? (When is that anybody's busy, but my own?) And I couldn't touch my bank accounts for weeks. I had to explain all my deposits no matter how small they were. I had to submit a letter 'explaining' where I had lived for the past 3 years. They did everything but ask for blood. :(

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    1. You should have told them that a troll would be living in the basement ; ) Sadly, the people they are harassing are not the ones they should be concerned with!

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  7. Very strange. Why would they ask you to verify your reasons. Is this a normal thing? What if you answered in the wrong way whatever that would be. I just asked my husband if he ever heard of this. He said he couldn't imagine why they did this. Anyway I am excited for you and your decision.

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    1. I wondered that too- is there a wrong answer?? I guess banks are skittish after all the trouble they got into back in 2006-2009, but how is going smaller a red flag?

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  8. wow! that's crazy! but YEAH for your family! I suppose it is more "normal" to have debt to explain away during escrow, right? you guys are on the right track~ so exciting!

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    1. We are very excited too! This is going to be such a life style changing move for us- living smaller AND smarter :)

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  9. What?!? That, quite frankly, pisses me off! It is none of their business! Can youpay back the loan.....that is ALL they need to know!

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    1. Exactly my thought too! We can repay the loan. End of discussion.

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  10. We were asked the same thing, and since the house we wanted to purchase was only a short distance away, they even had more of a problem with it.

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    1. Wow. I wonder why distance would matter? The town house is just one small town over from ours (across the lake).

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  11. Be careful. In a way they are asking you for information that legally they can not ask the question, they are hoping you will just give up the information. Good luck. Alaina

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    1. I know, it seems fishy doesn't it? If I can easily repay the loan, then there should be no questions!

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  12. oh my gosh you are joking right??! My husband and I were just discussing this yesterday. It seems to be a clear and sound and WISE DECISION for y'all.....who are they to question it?? and why must you justify it? it just makes no sense to me. I LOVED YOUR RESPONSE TO THEM!! And its so smart, and so TRUE...to go for smaller, smarter, less debt. Does that make no sense to alot of people?? apparently so. We hear ya tho!! Stick to your guns. We are doing it as well. Your reasons are 100% smart and sound, and seem carefully thought out and sensible and wise for your family. It is a sad reflection on our society to even question a private decision such as this.

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    1. Apparently smart choices are suspect! I guess they wonder why we would not go for the 400K house we qualify for and want something that is a fraction of that price. I guess we seem crazy to them!

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  13. Really?! What should it matter to them but your answer should be all they need. How crazy.

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Thanks so much for popping in. I appreciate all of your lovely comments...Tricia