Posted on: 27th Oct, 2005 09:40 pm
Hi! we have financed our daughter's first home through a mortgage. is there any way we can ensure that this loan will appear on our daughter's credit history? The laon has a note and a deed of trust drawn up by a real estate attorney and recorded by the county clerk's office. Impounds for insurance and taxes are included in her monthly payment and are held by us and dispersed as required. Her payments are on time. We have declared the income as income on our tax return and our daughter deducts the mortgage intrest on her return according to the rules of IRS.
Hi Jacks,
You cannot do much to make your daughter's on-time mortgage payments a part of her credit history right now. But when she applies for a mortgage, you can submit a letter to the underwriter explaining the details of your arrangement with her.
You should also provide the lender with a letter explaining the details of your loan to her. Also, affix a proof in the form of deposits to your bank account in the amount paid every month by your daughter. You should also attach copies of cancelled checks showing that the insurance and property taxes have been paid.
While you do so, please attach the copies of your tax return and your daughter's showing the mortgage interest deduction claimed by you and the right-off claimed by her also should be submitted. In order to do this, you should create an account for your daughter's mortgage so that none of your funds get mixed up with her payments. This will help an underwriter evaluate the risk in offering the loan to your daughter.
Regarding the reporting of data to the credit agencies, you should first become a member of the agency and then report a minimum number of transactions each month and report data electronically in a specific format. You should also fulfill the requirements of the Fair Credit Reporting Act.
Moreover, most data in the credit agencies are nowadays processed electronically. So if your daughter has to take a mortgage loan in future, then she should alert her lender on the fact that an important part of your credit report is not included within the written documents.
Hope that I could guide you.
Regards,
Caron.
You cannot do much to make your daughter's on-time mortgage payments a part of her credit history right now. But when she applies for a mortgage, you can submit a letter to the underwriter explaining the details of your arrangement with her.
You should also provide the lender with a letter explaining the details of your loan to her. Also, affix a proof in the form of deposits to your bank account in the amount paid every month by your daughter. You should also attach copies of cancelled checks showing that the insurance and property taxes have been paid.
While you do so, please attach the copies of your tax return and your daughter's showing the mortgage interest deduction claimed by you and the right-off claimed by her also should be submitted. In order to do this, you should create an account for your daughter's mortgage so that none of your funds get mixed up with her payments. This will help an underwriter evaluate the risk in offering the loan to your daughter.
Regarding the reporting of data to the credit agencies, you should first become a member of the agency and then report a minimum number of transactions each month and report data electronically in a specific format. You should also fulfill the requirements of the Fair Credit Reporting Act.
Moreover, most data in the credit agencies are nowadays processed electronically. So if your daughter has to take a mortgage loan in future, then she should alert her lender on the fact that an important part of your credit report is not included within the written documents.
Hope that I could guide you.
Regards,
Caron.
Hi Caron,
Thanks for your advice :D It was of great help.
jacks.
Thanks for your advice :D It was of great help.
jacks.