Buying land is far different from buying a home. Getting a mortgage for land is different, as is budgeting for a land purchase. If you're a home buyer who hopes to purchase an empty piece of land and then build a home on it, here's what you need to know about the process.
Know What You Want
Before a Williamstown home buyer can purchase land to build a home, the buyer must first know what they want. Yard size, location, land features, water features, proximity to nearest neighbours and proximity to businesses are all factors that buyers must consider when trying to purchase a lot.
Writing a list of must-have features before beginning the search for a lot can help make the experience of looking for land more rewarding and effective. Different lots can start to look alike if the buyer isn't focused on the specific features that will help them achieve their homeownership goals.
Get Financially Organized
Buying land can be a challenge, because many lenders will not loan money to people who want to buy an empty lot. Those lenders that will grant a mortgage to a buyer purchasing land often require the buyer to have a large down payment and good credit.
Buyers who are dedicated to the idea of purchasing empty land and building on it must get financially organized. This means they must have a large down payment, good credit, and good financial records to prove they are a low-risk buyer.
Create a Budget
People who are able to buy a lot and build upon it must have a budget for far more than the land purchase. Building a home can be very costly, and home buyers must be prepared for that expense. Most home buyers don't know how much they can expect to spend unless they consult with home builders early in the process.
In addition to the home purchase, buyers may also need to buy furniture, if they don't have enough to fill their new home. They must also be ready to pay for movers, buy curtains, blinds and other fixtures that can help make their new house a home. Creating a budget in advance can help the buyer decide whether they're truly able to afford all of the expenses associated with purchasing a property.
Get an Environmental Inspection
Environmental inspections can help home buyers make an informed decision when purchasing a lot. If the lot is polluted or if there are other environmental concerns the home buyer should be aware of, the environmental inspection will identify the problems. The home buyer can decide after getting the report whether the lot is a good investment.
Work With a Real Estate Professional
If you're a home buyer who is thinking about buying land, work with a real estate professional. Your real estate agent can help you identify a lot in the right location and with the right amenities. Your real estate agent can also help you negotiate a price that you can afford. For more information about how to get started with the process of buying land, contact a reputable real estate professional today.