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"Everyone is very happy," a source close to The Girls Next Door star tells PEOPLE.
But the family does have one concern.
"Her mother thinks Kendra is too young," adds the source, "but she is very happy for her daughter and absolutely loves Hank."
Wilkinson, 23, and fiancé Hank Baskett got engaged on Nov. 1 and plan to tie the knot in a special ceremony at the Playboy Mansion.
According to the source, Baskett, a wide receiver for the Philadelphia Eagles, proposed at the top of the Space Needle in Seattle and designed the engagement ring.
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