Are you interested in buying land in Oxford, Bruce, Water Valley, Paris, Banner, Big Creek, Calhoun City or some other part of the state?
Buying vacant land may strike you as a much easier thing to do than say buying a home, but while it is similar it is also quite different than purchasing a new home. As a matter of fact, buying land is more complex than a residential purchase.
While one cannot use the normal programs available for buying a home, there are other specific programs out there for someone who is interested in just buying land. Obviously, if you are paying cash for land, the process becomes much easier.
In Mississippi there are a variety of uses for vacant land. From farming, to tree planting, to hunting, to home building Mississippians love to buy land! So what happens when you find some land you would like to buy? How do you go about purchasing it? What is the process and how is it different from obtaining a home loan?
Things to consider:
-Find a prospect, then check it out. There are many different ways to do this these days... before ever stepping your feet onto a parcel of land. Google maps, Land Glide (iPhone app), Google Earth...just to name a few. I'm sure there are many more out there.
-Know what you are getting into. All land is not suitable for every purpose. Some land is not suitable at all for building a home, so this is something you should consider. What is the primary purpose for this land purchase?
-Location! Location! Location! Is the land you are interested in not only suitable for your needs, but in a good location?
-Zoning Restrictions? Are there any? What are they? Will they interfere with your plans?
-The down payment and interest rate is usually higher when taking out a loan for land. But why is that? For the lender, loans for land are much riskier than loans for homes. It would be far easier for an owner to walk away from vacant land than a home. Sometimes the commitment level of the buyer/owner just isn't the same as it would be with a home, and the lender has got to cover it's bases. The lender's goal in any transaction is to make a profit, thus the higher down payment and interest.
A lender never wants to be stuck with the collateral. They want payment in full, and according to the terms of the contract.
-There are different loan programs to choose from, and some vary depending on the lending institution you use.
As you can see there are a lot of things to consider when purchasing land. Consider the many different facets and you will be good to go! I have a number of land listings, so if you are looking for land for sale in North MS give me a call (or text/email)!