If you want to buy a timeshare, it’s important to understand your options. There are many different types of timeshares to choose from, and they vary in terms of what’s required to purchase them. Some may even require you to take out a loan. However, these loans can be expensive. The amount you’ll pay will depend on the lender you use and the type of timeshare you’re buying. It’s also helpful to know how much you can actually afford to spend.
When you are ready to purchase your timeshare, you can start the process by getting pre-approved for a loan. Most lenders will ask you to provide your social security number and income details. This allows you to compare programs and find one that works for you. Alternatively, you can go to a financial institution and inquire about a loan. Depending on the lender, you can be approved for up to $100,000.
If you’re going to take out a loan, you should also consider the interest rate. You might be able to save money by taking out a personal loan, instead of a developer or sales agent’s loan. In fact, some credit cards offer a promotional 0% annual percentage rate for up to six months. While this is good for a down payment, the actual APR might be higher.
Timeshare owners who have a credit score of 640 or higher will likely get lower rates. Those with bad credit will have to pay higher interest. To determine what kind of loan you qualify for, you can request a free credit check from a bank or online provider.
Another option is to refinance your timeshare. By doing so, you can increase your total loan amount and pay less on your monthly payments. Moreover, you can extend your loan terms by up to 10 years.
Lastly, you can look into buying timeshares in the resale market. Buying in this way is risky, but it can be a good option for those who are looking to sell their timeshare. Many times, you can find similar timeshares for less than $1,000. These deals are usually in the legitimate secondary market, so they’re not as inflated as the deals you’ll find through a timeshare developer.
Choosing a timeshare is a big decision, but it can be made easier by getting pre-approved. It’s possible to do so quickly and easily. Once you’ve received your pre-approval, you can begin shopping for the perfect timeshare. Using a new budget, you can narrow your search down to the right timeshares.
You may be able to use a home equity line of credit (HELOC) or a personal loan to fund your timeshare purchase. These can be a safer choice, as you’re using your home as collateral. On the other hand, you will typically be paying higher interest rates than with a developer or sales agent’s loan. Also, you might not be able to sell your timeshare in the resale market.