Does All Of The Recent Insecurity Of The Lending World Affect My Ability To Get A Land Loan?

Question: Does all of the recent insecurity of the lending world affect my ability to get a land loan? Answer: No! Most of the insecurity has come from sub-prime lending in the residential world. It directly should not affect the capability of a land loan. A lot of the insecurity has come from residential mortgage lenders who gave borrowers loans on housing that in no way could continue to pay for. They created short term, low payment loan products that would eventually have to be locked in or became variable into payments they could not afford. People were buying homes tens of thousands above what they truly could pay for.

Land Loan Appraisals - Are They All The Same?

Question: Is every land loan appraisal the same and are they all similar in cost? Answer: NO! Every lender has a certain required form of appraisal that must be preformed for a land loan. The more detailed the land appraisal is, the more it will cost. An appraisal is a very important entity of a land loan. Just as in buying a car, one always checks or should always check the bluebook value before purchasing. This gives you a detailed summary of options, mileage, and age and then creates a value one can expect. Land also has many different variables and is typically a much higher priced purchase.