SRC Frequently Asked Questions
Q. This is my first time buying property. What do I do first?
A. Whether you are purchasing land or a home, the first thing you need to do is determine what you can handle financially. Figure out your price range, what type of down payment you are able to afford, your monthly budget, and other purchasing charges.
Having a clear understanding of your finances – and where they may be years down the road – is very important to determining whether or not you are ready to purchase property.
Q. Does my credit score affect my ability to get a loan?
A. Yes, your credit score will affect whether a lender will be willing to provide you with a home or land loan. Your score will affect your chances of getting a loan, how much you qualify to receive, and your interest rate. The higher the score, the better the likelihood of receiving a loan with a great (low) rate.
Before applying for a loan, make sure to check your credit and ensure that there are no errors that need to be corrected.
Q. How much do I need for a down payment?
A. The amount you should budget for will vary depending on the lender. In general, lenders will expect between 5% to 20% of the mortgage loan.
Q. What if I don’t qualify for a mortgage loan?
A. Unfortunately, some individuals may not qualify for a mortgage loan as a result of bad or no credit, lack of funds available to secure the mortgage, or for some other reason. However, the good folks at SRC Land believe that everyone should have the opportunity to purchase property.
That’s why we offer owner financing. Owner financing is a loan provided by the seller directly to the buyer. Instead of having to go through a bank or other lender, SRC Land offers these services to those who are interested in purchasing land but are unable to through the traditional means.
Q. Are land loans different from home loans?
A. If you are interested in purchasing land or property, you should be aware that loans for land can vary depending on the seller. Oftentimes, the land loans have a shorter term, so instead of 30 years, they could last for as little as a few years. Additionally, down payments are generally higher when purchasing land versus purchasing a home.
Make sure to speak with our land experts to learn more about our owner financing regulations for land.
Q. How do I know how much land I need?
A. This all depends on your wants, finances, and purpose of use. Are you wanting to build a home and own just a bit of property? A half-acre lot may be sufficient for what you want. Are you interested in developing the property for agricultural or farming use? Then you’ll likely need much more land to accommodate your goals.
Our team can assist you in finding the right-sized property for your needs or you can begin taking a look at our properties on your own.
Q. What is escrow?
A. Escrow is essentially a type of savings account that your mortgage lender manages. Every time you pay your mortgage, a portion of those funds will go into an escrow account, which helps to cover estimated real estate taxes and insurance premiums.
Q. Are there any liens or back taxes on the properties SRC Land sells?
A. The properties SRC Land sells have clear titles and are up-to-date on taxes. Our property experts work hard to ensure that every property purchased does not have any liens against it or any other issues that could lead to problems down the road.
Q. Do the properties SRC Land sells have utilities?
A. Many of the properties we sell have utilities, but please carefully read the descriptions provided on our website to determine whether they are available on the property you are interested in. To learn more about zoning and land use, it is important to seek information from county authorities.