Tips for Avoiding Making Costly Mistakes When Buying Property

According to industry experts, the primary reason for buying property is the pride of ownership. Who doesn’t dream of one day owning land and building a home for their family?

Buying property is the most important investment you can make to ensure stability and security for your family’s future, and it’s important to know how to avoid mistakes once you decide on making a purchase.

SRC Land is committed to making your dream of owning land a reality. Below you’ll find a few suggestions for how you can avoid making costly mistakes during the land buying process.

 

Avoid These Mistakes When Buying Land

1.Be Realistic About What You Can Afford

The prospect of owning land is exciting for everyone, but prospective owners should be cautious when determining how much they’re willing to spend on a piece of property.

When you begin the process, it’s important to have a budget, and to stick to it. First-time buyers should set realistic goals, including finding a loan that offers comfortable monthly payments.

A mortgage affordability calculator is a valuable tool to know your price range and to better understand a figure that makes the most sense for you.

2.Check Your Credit Reports

Take a look at your credit reports and make sure there are no errors that may need correcting.

Different mortgage lenders have different requirements, but banks and financial institutions will look at your credit score closely to determine whether you even qualify for a loan. It’s important to review your scores for accuracy, and it’s easy to do so by requesting a free credit report each year from the three main credit reporting bureaus.

Consumers have the opportunity to dispute errors found and potentially fix the problems that may be preventing them from securing a mortgage loan.

3.Find the Right Source for Funding

Fortunately for buyers, there are several funding options for purchasing land. From a conventional bank or credit union to seller financing, prospective landowners have a number of options to make their dream a reality.

While credit scores may determine whether or not you qualify for a mortgage loan, don’t assume this traditional style of lending is your only opportunity for buying land. When you look into as many options as possible to find the best funding sources to meet your needs, you’ll avoid locking yourself into a financial commitment that may not benefit you in the long term.

4.Inspect a Property Ahead of Buying Land

Have the property you’re interested in professionally inspected.

Never purchase land before knowing what you’re going to get and look closely at the features that will determine how you intend to use the land. Before you buy, important factors to keep in mind should include: access to the property, the area’s topography, neighbors’ use of land, and whether the land is in a flood plain.

Hire a surveyor to show you the property lines to avoid inaccuracies that can ultimately cost you money.

5.Find the Right Agent When Buying Land

Not all real estate agents come with the same level of experience when it comes to land transactions.

Buying land is different from buying a home and you’ll need someone who has prior experience working in land transactions when you decide to move forward. Finding a qualified land professional is easy if you use helpful resources including an agent listed with the Accredited Land Consultant (ALC) Designation.

6.Ensure You Sign Up for the Correct Insurance Policies

Once you decide to purchase land, protect your investment with the right insurance policies. A land consultant will help you determine the best policies for your needs, and may help you understand which additional policies may best suit your situation. Common types of policies for landowners include:

        • Title insurance
        • General liability insurance
        • Property insurance
        • Crop insurance

 

SRC Land: Owner Financed Properties Available in Harlingen

SRC Land offers the best selection of land tracts for customers in Harlingen. We’ve worked with families in our community for over 20 years to ensure everyone has a path toward land ownership. Through our owner financed lots, we offer access to low down payments and affordable monthly payments regardless of bad or no credit.

 

SRC Land offers you the best in seller financing properties and provides an easy pathway toward owning your very own piece of land.

Take the First Step Toward Land Ownership

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How a Recession Can Impact the Value of Property

The ebb and flow of our nation’s economy may be tricky to understand at times. From one year to the next, there are periods of growth and economic expansion, followed by economic slowdown.

Many industries that contribute to the U.S. economy operate cyclically, and included among them is the real estate market. While many factors may contribute to an economic downturn, it’s important to remember the economy moves in cycles, and that this is a part of the way a healthy economic system works.

What Is a Recession?

A recession is a decline in economic activity for an extended period, lasting from several months to years. A recession results when the country’s economy begins experiencing negative gross domestic product (GDP), increased unemployment levels, decrease in retail sales, and varying degrees of income and manufacturing within an extended period of time.

A recession is an unavoidable part of the business cycle, and results from a consistent pattern of expansion and contraction within the economy. Several factors may contribute to a recession, including effects from uncontrolled inflation or an economic shock. Most recently, the latest recession has been attributed to the COVID-19 global pandemic.

Buying Land During a Recession and Its Advantages

While it’s nearly impossible to accurately predict how long a recession will last, and how soon it may be before the economy bounces back, there are still smart investments you can make as you wait for an upturn.

The advantages of buying land during a recession include lower prices and increased inventory. However, like any major investment, it’s important for you to assess how much property you can afford based on your income and how to take advantage of great deals before prices go up.

During a recession, it’s not uncommon for property prices to drop, making the land-buying process more appealing to prospective buyers. During a recession, you can expect to find purchase prices well below what they would be during a stable and healthy economy.

Another advantage of purchasing property during a recession includes lower interest rates and more attractive mortgage terms. Because the real estate industry plays such a critical role in the economy, the federal government lowers rates to help bolster property sales by offering cheaper interest rates on mortgages.

Owner-Financed Properties Are a Great Alternative During a Recession

As a prospective buyer, if you don’t qualify for a traditional mortgage as a result of federal guidelines stemming from the recession, owner-financed properties are a great alternative on the pathway toward land ownership.

Owner financing means a property is financed by the seller. As mortgage rates rise amid the recession, and with variable property rates occurring, owner-financing is a smart choice during these times.

When you purchase a seller-financed property, you’re offered more flexibility when it comes to a down payment. When working directly with a seller to finance land, a customer won’t be required to meet bank or government-required minimums.

When you decide to purchase under owner-financing terms, you will also benefit from a faster closing, which translates to less time having to wait to begin the process of setting down roots. The benefits of purchasing owner-financed land mean a less stressful financing experience than what you’d usually expect from having to deal with a bank or financial institution.

SRC Land Is a Trusted Partner During Challenging Times

SRC Land has offered buyers quality land opportunities for more than 20 years. Our team has helped land buyers navigate uncertainty because we make the land buying process simple and reasonable.

Our dedicated team of realty experts can share their collective years of experience and knowledge to help you map out a promising outlook that includes land ownership. Recognizing that taking the first step toward land investment may seem daunting, SRC Land is committed to helping you through each step of the buying process.

Harlingen and the communities we serve are resilient, and despite current challenges, we can work together to weather any storm. Let SRC Land help you realize your dream of buying land in Texas, and securing a brighter future for you and your family.

It’s time to take the first step with SRC Land in the pursuit of securing a more prosperous future for you and your family. Reach out to us today to learn more about our properties and owner-financing options.

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Everything You Need to Know About Seller Financing

Financing real estate transactions follow a standard practice that involves factors such as meeting income requirements, employment verification, and assessing a prospective buyer’s credit score to determine eligibility for a mortgage from a bank or other financial lender. 

But what happens when a buyer isn’t able to satisfy the requirements needed to secure a traditional mortgage loan, yet still wishes to move forward with a real estate transaction? In these instances, seller financing is a great opportunity for a buyer to continue on a path towards homeownership while avoiding the restrictions of bank lending, and it is a service that SRC Land takes pride in offering to aspiring landowners.

Understanding Seller Financing

To put in the simplest terms, seller financing is the opportunity for someone selling a home or property to finance the purchase for a buyer rather than requiring a prospective buyer to seek a bank’s assistance in securing a mortgage loan. 

Seller financing grants the buyer a chance to purchase property quickly and at a lesser rate than that of a traditional and/or conventional transaction. 

Important Aspects of Seller Financed Real Estate

A seller-financed property will likely run for a shorter period than what would be expected as part of a conventional mortgage. It’s important for a buyer to inform themselves on the terms of the financing agreement to ensure a desired and favorable timeline for repayment. 

Both a seller and a buyer should hire a professional to prepare the contract and promissory note as well as discuss any matters that require further explanation or clarification. 

 Why Seller Financing is a Wise Move

Sometimes a mortgage isn’t easy to secure, and purchasing property under seller finance terms is a fantastic alternative in cases where there isn’t a clear path to move forward via a bank or financial institution. Accessing alternative forms of credit is an advantage for prospective buyers, and when a seller is financing a sale, oftentimes a property may command a higher sale price.

Aside from a quicker and less expensive way to buy a home, seller financing offers buyers the chance to save money on fees generally associated with traditional lending. In transactions involving only two parties, it’s appealing to be able to avoid many of the costs associated with conventional real estate transactions. 

Seller financing guarantees better terms than what a bank or financial institution would provide through their traditional lending options. A seller-financed deal may give a buyer more flexible terms, and access to more ideal financial options for their specific needs. 

Quick Guide To Common Types of Seller Financing

  • All-Inclusive Mortgage: Also known as an all-inclusive trust deed (AITD), this option offers the seller the option to carry the promissory note and mortgage on the entire balance of the home price deducting the down payment. 
  • Junior Mortgage: If there’s reluctance from a lender to finance more than 80% of a home’s values, sellers may extend credit to the buyer to make up the difference. The seller carries a second, or “junior” mortgage for the balance of the purchase price, deducting the down payment. 
  • Land Contract: Land contracts don’t involve passing the title to the buyer. Rather, the buyer is afforded an “equitable title,” or temporary shared ownership. A buyer will make payments to a seller, and once the final payment is received, the buyer receives the deed. 
  • Lease Option: This option allows a seller to lease a property to a buyer for a contracted term, much like ordinary rental property. However, a lease option lets a seller agree to sell the property to a buyer within an agreed-upon time frame and in return for an upfront fee. Varying terms under a lease option can be agreed upon between a buyer and seller, offering a flexible alternative to the traditional lending process. 
  • Assumable Mortgage: An assumable mortgage offers a buyer to take a seller’s place on the existing mortgage. In these scenarios, a buyer may assume a Federal Housing Administration (FHA) and Veteran Affairs (VA) loan, along with a conventional adjustable mortgage rate (ARM) with the bank’s approval. 

SRC Land works with customers to make the dream of owning land a reality. For over 20 years, we’ve offered seller financing options that work to put our customers on a clear path to a prosperous future by providing low down payments and affordable monthly payments regardless of bad or no credit. 

Let SRC Land offer you the best in seller financing options and an easier way towards realizing your dream of owning your own property.

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Take the Guesswork Out of Buying Agricultural Land With These 10 Easy Tips

Finding the ideal agricultural land for sale in Harlingen can seem tough. There’s a lot that goes into starting up your next farm or ranch, so researching what you need to start operations and what particular qualities various properties have before finding the one that aligns with your goals is key.

Luckily, SRC Land has 10 tips to ensure that the agricultural property you pick is right for you and whatever business goals you wish to meet.

1. Look into the Land’s Previous Usage

The land’s previous use could influence your decision to purchase the property. Land that’s been unused for decades may not have enough nutrients left for your crops. In addition, an area that was used for industrial purposes could have toxic chemicals residing in the dirt and water.
Research the land’s previous purpose so you can avoid threats and focus on finding property with healthy soil.

2. Test the Soil’s Acidity and Nutrients

Before buying farmland, make sure that the soil has the right nutrients and acidity to grow your preferred crops. If you realize that the farmland for sale doesn’t have the nutrients and acidity required for your crops, then you’ll spend time and money amending the soil before planting.

3. Pay Attention to the Farmland’s Soil Drainage

Well-drained soil protects plants from diseases including stalk rot, root rot, blight, and molds. Standing water also causes breeding grounds from problematic insects like mosquitoes, aphids, and beetles that eat leaves.

If you wish to begin farming immediately, buy farmland for sale that already drains quickly.

4. Analyze the Agricultural Land’s Topology

Most farmers avoid land with steep hills since water can wash away nutrients down the incline. Make sure that the agricultural farmland’s topography matches your crops’ needs.

5. Research Access to Resources

Some agricultural land can be found in the middle or outskirts of densely populated cities. Most farmland, though, is in rural regions. Based on the agricultural land’s location, you may not have access to essential resources such as water, electricity, and natural gas.

In certain scenarios, you can extend water and sewage lines to your farm or ranch by contacting your county’s Planning and Zoning Department. For electricity, search for your county’s preferred power company. The project could be pricey, though.

6. Know Whether the Existing Infrastructure Matches Your Standards

Agricultural land requires more than healthy soil. You need a farm infrastructure that helps you grow and sell crops. The most important kinds of infrastructure include:

  • Roads
  • Buildings
  • Irrigation
  • Electricity

Farmland roads have to accommodate heavy machinery like tractors, rollers, and cultivators along with trucks. Buildings, on the other hand, should offer a secure place to store your equipment and crops. You may need to build buildings like grain silos, packing facilities, and refrigerated sheds to sustain the freshness of your produce.

Irrigation infrastructure could involve drip irrigation systems that run along rows of crops or overhead systems that sprinkle crops automatically. Before investing in farmland, make sure it has an efficient irrigation system that’ll give your crops the right amounts of water.

Additionally, bear in mind that electricity becomes scarce when you travel deeper into a farm’s acreage.

7. Determine How Easily You Can Get to the Farmland

When you look at a map, the farmland for sale might appear to have a location just off a major highway or interstate when, in actuality, you may have to drive miles of country road to get from the interstate’s exit to property.

You may not mind driving an hour from your farmland to the closest major road; however, the issue is that you’ll need to haul heavy equipment and crops a long way numerous times a year. The duration and cost of driving your car 50 miles are significantly lower than the time and expense of hauling a 6,000-pound tractor down the same route.

8. Estimate the Distance to Distributors, Retailers, And Markets

You’ll also have to take into account the distance to distributors, retailers, and markets that purchase your crops.

Look for agricultural land that puts you within a fair distance of distributors and retailers. A centralized location that grants easy access to many of the area’s cities and towns could save your farm a lot of money.

9. Check the Area’s Cell Phone Reception

Today’s farmers need smartphones to stay connected with their employees, clients, and distributors. A region lacking good cell phone reception will make it challenging for you to contact the people who help your business succeed.

Check out the location and see how well your mobile device functions there. If you get poor reception, speak with your carrier about adding nearby cell towers, or if there’s no other alternative, you may want to choose a different property that already comes with good reception.

10. Research Whether Someone Owns Mineral or Gas Rights

Buying agricultural property doesn’t mean you own everything beneath the surface. Someone else could own mineral and gas rights.

For instance, if the previous owner owns the coal, natural gas, or other mineral rights on your property and you only have surface rights–that is, the property that your home is on–then they could have the right to enter your land and start mining in only as much of an area that they need to get the job done. You could check to see who owns the surface and/or mineral rights at your local County Clerk’s Office.

A ton of research goes into discovering ranch or farmland that meets your specific needs. Land real estate transactions require specialized expertise and experience, especially when it comes to finding the right farmland for sale.

Before investing in farm real estate, find a qualified seller-financing specialist at SRC Land to help you pinpoint the greatest opportunities for your purchase without pouring extra time and money into it.

Let SRC Land Be Your Helping Hand in Finding Your Dream Agricultural Property

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