| Land loans are specially fashioned for the purchase of | | | | makes it very difficult to budget for your repayments. |
| land. Acquiring land loans is not different from acquiring | | | | To ensure you have the best of deals, consider a |
| any other types of loans. This does not mean that land | | | | lender who offers long term fixed rate. This will shield |
| purchase loans are exactly the same as other | | | | you from the rude shock you may suffer at the end |
| secured types of loans. As a matter of fact, they are | | | | of a short term fixed rate deal. |
| much more different from other loans such as | | | | Some dishonest lenders charge unnecessary fees. |
| commercial property loans and mortgages. To | | | | These fees are commonly known as pink fees. They |
| purchase a piece of land using a land loan often | | | | include fees such as document preparation fees as |
| requires much more information from the prospective | | | | well as underwriting fees. They do so to give the |
| borrower. | | | | process of application the impression of being |
| During times of economic slump, few people are likely | | | | legitimate. Unknown to majority of borrowers, these |
| to be looking for land to purchase. The prevailing | | | | processes are part of normal land loan applications. |
| economic conditions should therefore not intimidate you | | | | Some lenders inflate the legitimate fees. Ask for a run |
| as more loan lenders will be searching for your | | | | down of fees by your lender before submitting your |
| business. This allows you to shop around for the right | | | | application. |
| loans. There are a few things you should consider | | | | Another important aspect of land loans is the issue of |
| when comparing lenders. When comparing lenders for | | | | time. You should present all your financial formation |
| loans for land, you should have the following mental | | | | before applying. Approval should take less than 72 |
| questions: | | | | hours at most. The appraisal process takes 1 to 3 |
| Are there long term fixed rates being offered? The | | | | weeks only after loan approval. The title takes 1 to 2 |
| value of land is dynamically fluctuating every single day. | | | | weeks to process. A reputable lender should be able |
| This has seen to the plummeting of interest rates. | | | | to handle your land loan within three weeks after |
| Before you smile on this, you should know that these | | | | application. In case of problems, this process will |
| rates may rise at any time. Variable interest rate | | | | obviously take longer. |