Couple of questions from a soon to be member...

[cc2096]

Hi All,

I'm glad I found this board before I decided to buy, as I can see there are alot of helpful people here, and I have a couple of questions.

First, I have a question about financing. When I called the DVC, I spoke with Julie, and she told me that when you finance your DVC membership, it does not report to any credit agency. Is this true? It is kind of important, as my DH and I plan on buying a house in the summer of next year, and we don't want this purchase coming back to haunt us when the time comes.

Second, What is the annual increase in maint. fees like? Julie said that my fees for this year would be $47.51, but that they tend to go up each year. Is this true, and if so, by how much.

That's all I can think of at the moment, but if I come up with more, I know where I can turn to!

Thanks!!
Chris

 

[JimC]

Welcome to the DIS

Even if Disney does not report it, you will need to disclose it for your mortgage application. To not disclose it could come back to haunt you even more.

There is a thread with the information for maintenance fees. If I can find it I will add the link.

http://130.94.75.33/showthread.php?s=&threadid=469480&highlight=+maintenance++fees

 

[Cruelladeville]

No, your DVC is not on any credit report, as long as you stay current with your payments. We have paid off three contracts, and refinanced our house twice over the years, and DVC was never on any credit report! The last time, we actually refinanced in order to buy another contract, but we temporarily financed with Disney while waiting for all the paperwork to go thru--it never showed up anywhere. I didn't tell them, either! I can't stress this enough--you MUST stay current. If you make it a habit to be late on those payments, then the contract will suddenly become visible via your credit report.

 

[tjkraz]

OK, this is probably going to SOUND preachy, so I'll preface my comments by saying that it is not my intention to come across that way.

First, JimC is correct. Even though DVC does not show up on your credit report, you have an obligation to disclose it on a mortgage application. If you do not disclose, it is considered fraud. Many people do not even realize that as they don't bother to read the fine print. But at least know what you're getting into when you and your husband sign that application form.

Second, if you are really worried about a bank approving you for a mortgage with your DVC dollars disclosed, then I really think you should reconsider DVC at this stage. When my wife and I purchased our own home, we bended and twisted and struggled with the rules to get our banker to approve a loan for the house that we wanted. In the end we did get the loan, but those first couple of years were VERY lean. You cannot imagine (or predict) the volume of unexpected expenses that a homeowner must face.

Before you dive into DVC, at least meet with a banker and consider going through a pre-approval. They will tell you how much you can afford. With a minimum 150 pt purchase at SSR, 10% down, financed over 10 years, you can count on about $200 in additional expenses PER MONTH to start. And don't forget that you still need park passes, transportation, meals, souvenirs, etc.

DW and I honeymooned at WDW and bought our first house right around our first anniversary. It then took us 4 more years to get back to WDW. We weren't exactly living in poverty, but we did find that things like snowblowers, carpeting and a new water supply line to our house (worst $1300 I ever spent) took precedent over those great Disney vacations.

If you're worried about that $200 per month costing you your dream house, then why take the chance??? DVC isn't going anywhere. We will wait for you....honestly!

 

[SSRex]

tjkraz,

That is the first time I have seen an estimate of $200/month. I have exactly that purchase you described:

150 points ($79/point 10/03)
10% down
monthly payments over 10 years (with auto deduction)

I did not have a good idea of what the payment might be with the maintenance fees included.

Also, when do you expect the first payment to be dedcuted, I chose the 15th of the month payment date, so June 15th?

Thanks,
Rex

 

[tjkraz]

At $3.80 per point, the annual dues are $570. Monthly payments would be $47.50 per.

If memory serves, the monthly payment amount for the purchase itself is something like $137 per month. So I figured $200 was a safe number.

The exact figures should be spelled out in your paperwork.

I don't remember the exact payment date we chose. I believe the choices were to begin on 6/1 or 6/15.

You might want to check your contract for the amount of the first payment. I believe that the first payment is a higher amount than normal because it encompasses more than a single month's ownership.

 

[DrTomorrow]

Greetings, cc2096!

Boy, if DVC Guides are "Low" Pressure, what are we - "Negative" Pressure?

Seriously, though, I have to agree with tjkraz on this - at least knowing only what we know about your situation. DW and I waited until our DS was through college and employed (w00t!) before we bought into DVC - we just didn't feel comfortable with the extra debt AND UMich tuition payments AND room/board. And - at least for me - I'd go NUTS worrying about which lender was going to find out about other loans; and what I did or didn't disclose. Now we can vacation without care....

So, if you have the $$$ and were just curious, go for it. However, if it's going to be close, get that dream house purchase all squared away - we'll set aside more than enough "Welcome Homes" for you!