Before considering to purchase land to build your dream home, your biggest purchase is probably a car. Where two important factors are in consideration, the decision becomes more complex. Since this is a place you will spend some years residing in, you probably need to cherry-pick the best pieces of land.
To get started, what you need to understand is that, these outlined items just offer you a better experience in your buying process and do not guarantee a smooth process.
Understand your finances and your ability
Everyone will tell you about this, but what does it entail exactly? When trying to understand your purchasing power these are the key items that we look at:
– Your income
– Your credit scores
– Installment you are willing to put down on the table.
If you will be seeking to look for external financing, the lender will need to know your source of income, the amount you earn every year, and your ability to repay their loan.
This is where credit scores come in. Your credit score needs to be good before you consider looking for a financier. If you have any outstanding loans, you need to be having a good record of making the payments. Perhaps you can consider not taking a new credit card before getting your land loan approved as that will reduce your credit score.
In addition, financial institutions tend to look at the down payment you have to put forth for your purchase as this will affect the amount you will be paying every month.
Once you have put that in order if you have other investments like in money markets, separate banks accounts, try to consolidate into a single account for smooth transactions.
The land you are purchasing shouldn’t be beyond your reach as you will need money to build your house later.
Understand what you want
Now you know you are buying a piece of land or plot to build your first home. Some of the questions to ask yourself;
- What kind of a house do you want to build? Is it a single-family house or multifamily house? Every design has recommended size of land.
- Where is your preferred neighborhood?
- How is the topography of the land?
- Do you understand the kind of houses allowed to be built in that neighborhood?
If you can comfortably answer those questions, then you will be on the right step towards acquiring your new home.
Find a real estate agent
Once you have everything in order the fun part begins, searching for a real estate agent that has listed or selling plots in that area you are interested.
Looking for a real estate company or agent to trust is a no-brainer work. You will just need to start by looking for properties they have listed. The properties listed should be in the area you are interested to buy your land in.
The most recommended way to screen your agent is by using your friends or relatives who have bought land through them.
Since it is your first land purchase, someone who cares for your interests and needs. Use all available information to screen your real estate agent before approaching them.
Purchasing your first land to build your new home shouldn’t be that hard. You only need to ensure that the transaction process is smooth. Have your finances consolidated, know where to build your new home, and approach the most experienced real estate company that will cater to your needs.