Mortgage quotes on land a bit tricky
Posted on September 4, 2007
Filed Under Home Finances |
The Great American Frontier, how great is the prospect in the imagination. Actually, from a residential homeower’s perspective, it is still a possibilty. But like those great American Quarter Horses, you might have to jump through some hoops.
While I can’t tell you everything you would need to know to make it happen, I can tell you what you need to get going down that path. You see, I myself decided a few years ago to trade in my city-dwelling for my country dream. Most of my work is in the city so I still get to see it plenty. But when I’m on my own time, I get to see my kids run and scream and not disturb the neighbors or be in danger of speeding cars while they ride their bikes.
And, having bought outside a major market center like the DFW area, I get to see the value of my investment (my “home” my wife reminds me) increase every year.
Life in the country or rural areas is not for everyone, but if you think it might be for you, here are few things to keep in mind.
Expect to pay a higher interest rate - at least of first. In addition to talking to various banks or lending institutions, you might end up seeking the help of a “land bank”. You can start obtaining mortgage quotes easily enough by contacting qualified lenders from right here at our main site and there is no cost or obligation to do so, and it can save you a ton of time. But, if your case is unique enough that you need special care, then search for the keywords “land bank”.
My first loan on my country residence was at close to 11%. But, I was able to refinance after 12 months under the terms of the loan, and now my rate is down to around 6%.
Next, very importantly, carefully examine your income needs and your vocation. If you are an IT professional without a work-at-home job, then your skills will likely be called for only in a city. That means you better count the cost of your commute. There are some awesome deals on beautiful land in states like Missouri, Arkansas, and Michigan to name only 3, but the availability of an Information Technology job to pay the bills is a different story. There are many people who have gotten into their dream homes only to lose them a few months later because they could not find the job needed to pay their mortgage. Whether you are a School Teacher, Fire Fighter, Mercedes salesman, or an Astrophysicist, do your homework.
Those preceding points are bigg’uns sure ‘nuf. But the most important thing I can tell you is this: if it is your dream to live in the country or on an acre or 10 or 40, then follow your dream to see where it leads you - that is, if you are seriously interested in it ever becoming a reality.
All the best!
Stephen Dunbar
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