Home | Finance | Credit | Credit Loans
You have been looking for some time, and dreaming about getting a lot and building a great house for you and the family. Well, you've found the lot and are now looking for the right financing for it. Getting the right lot loan for your new investment in life can be had if you will look around for it, and not move too quickly. Here are some tips to help you get that perfect lot loan. Know What You Are Looking For In order to know a good deal when you see one, you are going to have to know a little about lot loans, and their terms. This means doing some old-fashioned homework. Now there is a word that you need to get used to - again. It will prove to be well worth it after you have landed the good deal and sifted out the bad - and saved yourself thousands of dollars. Have An Investment Ready Although lenders can be found that will give you a loan for up to about 90% of the price, you will get a better deal and interest rate if you can pay for at least 20% of the loan to value (LTV), but you do not want to pay more than 35%. Beyond these two extremes, you probably won't get a loan. Establish A Date To Build Your House Most lenders do not want to talk to you about a lot loan unless you have a date to build your house within 5 years of buying the land. By having a concrete date set, you will be more likely to have your lot loan approved. By talking to them about being able to convert the loan to a construction loan and then to a first mortgage, you will find many that would be glad to talk to you. Going this route can save you some money, too. Determine The Best Kind of Loan Knowing the difference between a fixed rate mortgage and an adjustable rate mortgage could mean a difference in savings of thousands of dollars. Although both have a fixed rate of interest for a while, one will definitely do better than the other - depending on which way the economy is going. Get Online Estimates Most mortgage companies, and other lenders or brokers, have websites and give you access to getting your free online mortgage estimates. By typing in some basic information, some websites will give you results from many different mortgage lenders. Remember, though, that online estimates are only that - estimates. In order to correctly calculate what a mortgage would be, a company must review your credit rating and physically do an appraisal of the property. Break Down The Estimates Try to break down the estimates you received into the base loan and the fees. Then compare each of these among the same type of loan, whether a fixed rate or an adjustable mortgage. Negotiate After you believe that you have found one or two companies that look good to you, you can check them out on the Internet and make sure that they are good companies. Then, talk to them and see if you can negotiate an even better deal than what was originally offered. A little hint - the fees are what you want to work on. Finally, watch out for ERC's, or Early Redemption Charges. These things will prevent real savings if you should decide to pay off the mortgage early. In other words there is a fee for it. Throw it into the negotiation process too, and if they won't remove it - others are available.
Information and Articles: http://www.mastersmba.com
Providing Information on various topics, please browse our other Articles for more informative resources, we house information on every topic imaginable so regardless of your needs you can be assured to find the answer here. If you wish to reprint this on your own website, simply click the "Web Version" in the right menu, and you are presented with a pre-formatted document to use.
A lot of the information is written by the Master Article team, and published exclusively on the MastersMBA.com website, and we do our best to research all information to ensure it's as accurate as possible. However at times we also publish documents given to us by other sources, we do examine these documents to ensure they are as accurate and correct as possible however at times they discuss highly specialized fields making it hard to authenticate the validity of every fact in the document. These are written by specialists in their respective fields, and we do trust their integrity and judgment however it's always a good idea when doing any research to consult a number of sources and form your own conclusion based on a number of view points.
