Will DVC turns us down based on income-UPDATE 7/31

[AlexTina]

It may not seem like it now but I truely believe that everything happens for a reason. Maybe there is a better contract out there for you or maybe in the long run you would just be better off waiting a little while.

My DH and I signed a contract to build a new house in January of 2007. It was going to be this gorgeous 3200 Sqft. home with everything we've always wanted. We were going to have a seperate bedroom for each of our kids, a beautiful kitchen, and a living room with a ceiling that went all the way to the second floor. It's all I could talk about. Well we decided that since the homes in our neighborhood were selling within 3 - 6 weeks of being put on the market at the time we would go ahead and wait a few months before putting our house up for sale (hoping to avoid renting for too long). Fast forward to May 2007 and we're ready to put the house on the market. Get a realtor and she convinces us that this house is great and it's going to sell within weeks. Well weeks passed and then months passed and then October 2007 came and the new home was ready. UGH!!! Homes are no longer selling what should we do?? Well in the end we decided to cancel the contract rather than be stuck with 2 mortgages for who knows how long. We were only able to get a small portion of our deposit back but in the end we definately won!! We have since changed our loft into a 4th bedroom for our 3rd child so now all of our children have their own rooms, we have changed out light fixtures, mirrors, etc.. and have plans to add wood floors and make a few other cosmetic changes and we still only have 1 mortgage which happens to be less than half of the mortgage we would have had if we had bought the new home and less than a fourth of the mortgages we would have been faced with if we had to have two. I feel so sorry for all the people who went through with their purchases in the subdivision that we were buying into. The builder has since left town with the subdivision only about 20% complete, most homes are sitting next to dirt lots and will for who knows how long, and the builder has many inventory homes which they are still trying to sell for anywhere from $60,000 - $80,000 less than they were charging when we signed our contract (and they still aren't selling). These people are stuck with homes that they owe much much more on than what they are worth at this point and I definately feel that someone was watching out for us, thank goodness we weren't able to buy that house, LOL... I definately didn't feel this way at first but now I see that we are SOOOOOOOOO LUCKY that we didn't get that house. Oh and with energy prices on the rise (just got my electric bill $315 for 2050 SqFt.) I am sure glad I don't have to cool 3200 SqFt. So in the end you watch and see you'll be glad that things worked out this way. Good Luck to you.

Tina

 

[Inkmahm]

To be quite honest this has me nervous now. We don't have the greatest credit in the world but didn't get the prime rate of 10%, we got the 14%, I make good money though and that is on the stubs I sent in. Why would our guide tell me we are "all good" and "approved" if that isn't the case? I wouldn't have 20% down and now am worried, what is going to happen?
Lesley

14% interest rate? Really? OMG I would never consider that in a million years for a luxury item like DVC. I paid cash for our points so I had no clue that Disney charged such high rates of interest!

I wouldn't even pay that rate for my home mortgage back in the mid- 1980's when that was the going rate. No way. I held off buying my home until 1987 when I could get less than a 10% rate. I didn't buy DVC until long after the mortgage was completely paid, I had no other debt and I could afford to pay for the luxury item in cash. I know not everyone can do that, but 14% interest is just asking for trouble, I think. Especially if your credit is already "not the greatest in the world."