Question about financing

[erin1715]

I recently came to an agreement with a seller to buy a small DVC contract and I will be financing. Yes I know most people don't recommend financing but that's not my question.

I will put $1000 deposit down. So when I complete the loan application do I still request the full amount of the contract or do I subtract the 1k deposit that I have to put down? I asked the lender and they still said to request the entire amount of the contract but that doesn't seem right to me.

 

[gharter]

You can put down whatever amount that you want on the loan application. Just remember, you will be paying interest on whatever amount you borrow. There are different costs from different companies for loan processing. Sometimes, that is a set amount, other times it is based on the amount you borrow. A good rule of thumb is to borrow only what you need.

 

[OKW Lover]

I will put $1000 deposit down. So when I complete the loan application do I still request the full amount of the contract or do I subtract the 1k deposit that I have to put down? I asked the lender and they still said to request the entire amount of the contract but that doesn't seem right to me.

The lender would love to loan you more so that they can earn more interest. I would put down the lower amount as long as you can afford the $1k deposit out of pocket.

 

[erin1715]

The lender would love to loan you more so that they can earn more interest. I would put down the lower amount as long as you can afford the $1k deposit out of pocket.

Don't you have to pay the $1k out of pocket whether financing or not?

 

[gharter]

Don't you have to pay the $1k out of pocket whether financing or not?

When you send back the signed contract, you send a $1000 deposit at that time (refundable if Disney takes the contract). The remainder is due when you send in the closing documents. In my case that was about 6 weeks.

 

[Meandnevaeh]

I recently came to an agreement with a seller to buy a small DVC contract and I will be financing. Yes I know most people don't recommend financing but that's not my question.

I will put $1000 deposit down. So when I complete the loan application do I still request the full amount of the contract or do I subtract the 1k deposit that I have to put down? I asked the lender and they still said to request the entire amount of the contract but that doesn't seem right to me.

It depends on who you are financing with most likely, like if u are using Monera, they will only finance up to a certain amount based on cost of contract and such. Usually u will not include the $1000 in amount to borrow.

 

[erin1715]

It depends on who you are financing with most likely, like if u are using Monera, they will only finance up to a certain amount based on cost of contract and such. Usually u will not include the $1000 in amount to borrow.

Monera was the company I asked about the amount to request and they told me to include the entire amount. But I was confused with Monera because when you use their loan calculator they give you three options, and each one you have to put money down out of pocket. So I am trying to keep my out of pocket costs down in addition to the $1k deposit. Maybe I will have to look into timeshare lending...

 

[Meandnevaeh]

Monera was the company I asked about the amount to request and they told me to include the entire amount. But I was confused with Monera because when you use their loan calculator they give you three options, and each one you have to put money down out of pocket. So I am trying to keep my out of pocket costs down in addition to the $1k deposit. Maybe I will have to look into timeshare lending...

So, with Monera, u fill out the total cost of the contract, then u determine which of their options will work for you as far as out of pocket costs, the $1000 deposit that u paid will be part of that out of pocket cost.

 

[Meandnevaeh]

The loan amount you will request will be the actual amount you are requesting them to loan

 

[erin1715]

So, with Monera, u fill out the total cost of the contract, then u determine which of their options will work for you as far as out of pocket costs, the $1000 deposit that u paid will be part of that out of pocket cost.

So the $1k that I will pay to the broker will be included in the amount monera shows I pay out of pocket? For example, if I pick the option that says purchase price option $8k, maximum loan option $6500, loan short of purchase price $1500. Are you saying the $1k I will pay to the broker is already included in that $1500? So besides the $1k I would only pay $500 more out of pocket?

Or would it be I pay $1k to the broker and then an additional $1500 to the lender?

I'm sorry but this is a little confusing!

 

[Meandnevaeh]

So the $1k that I will pay to the broker will be included in the amount monera shows I pay out of pocket? For example, if I pick the option that says purchase price option $8k, maximum loan option $6500, loan short of purchase price $1500. Are you saying the $1k I will pay to the broker is already included in that $1500? So besides the $1k I would only pay $500 more out of pocket?

Or would it be I pay $1k to the broker and then an additional $1500 to the lender?

I'm sorry but this is a little confusing!

Yes, the 1000 is part of the $1500 u pay out of pocket, that's assuming you did the calculator with full purchase price. But you will also end up paying in addition to the already paid $1000, the other $500, then closing costs-and Maintenace Fees listed in contract offering, also the additional $200 fee from Monera and another $250-350 closing costs to Monera also. So after your $1000 deposit expect to pay another $1000 plus closing costs and MF. I hope that makes sense

 

[Meandnevaeh]

Yes, the 1000 is part of the $1500 u pay out of pocket, that's assuming you did the calculator with full purchase price. But you will also end up paying in addition to the already paid $1000, the other $500, then closing costs-and Maintenace Fees listed in contract offering, also the additional $200 fee from Monera and another $250-350 closing costs to Monera also. So after your $1000 deposit expect to pay another $1000 plus closing costs and MF. I hope that makes sense

I am in ROFR for a contract using Monera, my original contract is 100 pts at $90-9000, my closing costs are 454, and MF are $544, I put down a $900 deposit, with the option I am going with, and all additional closing costs and MF and financing fee of $200, I am expecting to pay another $2000(approx) out of pocket at closing, so I am at $2900 out of pocket total

 

[erin1715]

Yes, the 1000 is part of the $1500 u pay out of pocket, that's assuming you did the calculator with full purchase price. But you will also end up paying in addition to the already paid $1000, the other $500, then closing costs-and Maintenace Fees listed in contract offering, also the additional $200 fee from Monera and another $250-350 closing costs to Monera also. So after your $1000 deposit expect to pay another $1000 plus closing costs and MF. I hope that makes sense

Ok that helps a lot! Thank you. I think I've got it now