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.