Securing loan before making an offer?

[amy ettinger]

My husband and I have decided to purchase DVC through resale. I am starting the process to secure a loan. Do you have to have $ in hand before you submit an offer? We have seen a few we are interested in.

 

[amccu18007]

No, I don't believe so. You will need your deposit as requested by your title company/broker as a show of good faith.

 

[amy ettinger]

How much deposit is required? I assume you get it back if the offer is turned down or contract doesn't go through?

 

[fearthisinc]

How much deposit is required? I assume you get it back if the offer is turned down or contract doesn't go through?

I have seen some companies want a deposit of 10% of contract price up to about 2k..... Most have a limit of $1,500 - 2k that they will allow on a credit card.. The deposit is fully refundable if Disney exercises ROFR or the deal falls through for any reason OTHER than you backing out..

As far as securing a loan goes.. If you are using one of the loan companies like Monera, then you can wait until you get an accepted offer.. You can do the "quote" to see what you would pay, but you will need all the details of the contract to complete the process.. Again, it depends on where you are securing the loan from.. If you are using a bank then you would need to go through the normal steps for pre-approval.. Monera and companies like them rarely deny anyone.. Monera doesn't even do a credit check...

 

[gharter]

How much deposit is required? I assume you get it back if the offer is turned down or contract doesn't go through?

It seems to depend on the company that you purchase through. For both of our contracts we only had to put down $1000 on each contract. As mentioned above, that is refundable if the contract doesn't go through unless you back out.

How much deposit is required? I assume you get it back if the offer is turned down or contract doesn't go through?

I think it depends on who you purchase through. For both of our contracts we only had to put down $1000 no matter the size of contract. As mentioned above, if the contract does not go through, that is refundable unless you back out.
The remainder of the money is not due until you ar returning the final paperwork and closing payments. You can expect the process to take 30-90 days. Seems to be a big spread on how long the process takes start to finish. So depending how long it would take you to get your loan would dictate when you need to get your loan in place

While not your question, many have suggested not purchasing until you have the money in hand and don't need a loan. Only you can decide if taking out a loan is a good decision for you.
Good luck! We have really enjoyed DVC.

 

[Lindsay's4littles]

Our deposit was 10% of purchase price so $1,700. I sent it as a personal check but they would allow a credit card for an additional fee.
I wouldn't wait for your loan to summit an offer of you know you will be approved for your loan. The resale process take a while (I am 3 weeks in today and still have a long while to go)

Also our deposit is 100% refundable is Disney buys our contract or it falls through for any reason on the sellers behalf.

 

[minorthr]

We were only required to put 10% down. Also getting approved for a loan took no time at all I think we submitted an app and 15 minutes later were approved.