Buying Land: Before You Apply for a Loan

So, you’ve decided you want to purchase some land. Maybe build on it in the future. Have a budget in mind. And you’re curious about the whole process and what comes next.

Before you apply for a lot or land loan, it’s important to build a team of experts. While Rural 1st loan officers play a critical role on your team, there is another key player who will help you on your journey — a Whitetail Properties Land Specialist. A real estate agent that specializes in land purchases can be invaluable as you look for a property that meets your needs.

Understanding how you’d like to use the property is the primary consideration when purchasing land. Did you know that some properties have deed restrictions on the types of livestock you can have on the property? What about access rights for building a road? All these restrictions are found in the property’s deed and a well-versed Land Specialist will know to look for these specifics.

Maybe you want to hunt and fish or spend weekends with your family at a cabin. If you want the land for hunting, you’ll want to make sure there’s enough acreage and wooded area to attract wildlife. Growing food plots is one of the best ways to attract wildlife to your land. Consult a land management specialist to find out which plants keep deer and other wildlife visiting your land during hunting season.

If you’re interested in harvesting timber, you’ll need to know the types and sizes of trees you’ll need. Consult with a forest professional to visit the property and create a forest management plan to ensure the longevity and health of the land. They can also identify marketable trees that could potentially have value.

Depending on the type of soil on your land, you might be able to grow vegetables, fruits or flowers — which could be a potential source of income. Do some research on which crops grow best in your area. If you’re not interested in farming it yourself, consider partnering with a local farmer who might be interested in renting those acres. Renting acreage can provide you with a revenue source as well as help with maintaining the land.

If you’re interested in buying property that is going to be parceled off from a larger section, don’t forget to consider the survey expense which can vary significantly. You will want a survey to know exactly how much land you’re buying and where the boundaries lie.

Once you’ve met with your Whitetail Properties Land Specialist, it’s time to get pre-qualified. A Rural 1st loan officer will walk you through the financing required to purchase your land and help you understand what’s needed to close your loan. When purchasing land, it’s important to consider the additional down payment requirements and higher credit standards that might be required. Rates vary, but by obtaining a pre-qualification, you’ll have the confidence to make an offer that works for you.

Now that you understand what you need to know as you start your land buying journey, reach out to Rural 1st today.