Buy Land

How will you finance your LAND?

1 Locate the land that you would like to finance and take note of the exact address of the property.

2 Contact your Realtor or your attorney to make an offer of purchase.

3 Accept the offer of purchase for the land.

4 Contact your bank or financial institution to begin the loan application process and set up an appointment to come in.

5 Bring all financial statements and asset information to the appointment. Make sure your credit score is above 650 before applying for a loan, otherwise you may be rejected.

6 Contact a land surveyor to assess and perform a perk test on the property.

7 Take the perk test results to the bank or financial institution and complete the application process.

8 Receive approvals for your loan from the bank or financial institution.

9 Set up an appointment to meet at the title company with the current property owners, your Realtor or attorney and yourself to cash out the land with a wire transfer from the bank.

10 Complete the closing process and receive the deed and title to the land.

Who to go to if you need advice on Mortgage?

If you are worried about making your mortgage repayments or losing your home, an independent adviser can help. Find out how to contact an adviser, what they can do and what to take with you.

How to get land mortgage?

If you want a land mortgage you will likely have to work with local banks or local brokers who know the area and who have an office near by and can keep tabs on things.  However, you will still have the short term loan.  It is unlikely that you can acquire a 30-40 year mortgage on the land.

There are other options if you cannot get a good deal or cannot afford to pay off a short loan or balloon mortgage.  The land owners themselves can finance the mortgage.  You may still need a broker to draw up the terms, but if the land owner is willing to sell and is no hurry to get the money, it is possible.  Unfortunately this only happens in ideal situations.  If you cannot get the land owner to finance the deal, you may be able to sweeten the deal for the banks and get a longer loan if you have plans for the plot of land.  For instance, if you do plan on doing something with the plot of land besides holding it, Develop the idea a little more, come of with a pretty concrete plan and you may be able to get the bank to give you a land mortgage because in the end they will own something valuable.  The best thing for them is to see that you have already figured out the costs, have blueprints for the house and have a general time frame.