Do you dream of owning land in the countryside? Whether you plan to build your forever home, create a place to escape from the hustle of city life, or use the acreage for recreational activities, Rural 1st is here to help. Our teams live and work in the rural communities we serve and are ready to help you finance your dreams of country living. The process of buying land can be daunting. That’s why we’ve broken down the financing process into four key steps.
Step 1: Identify How You Plan to Use the Land
It’s vital to begin your land-buying journey with a clear vision of how you plan to use it. This will help you focus your search and save time by avoiding rural properties that don’t match your needs.
If you plan to build a home, be sure to explore zoning and building regulations, utilities and infrastructure needs, water rights, and accessibility from the road. A site assessment is a great way to explore all these factors and ensure the land you plan to buy will be the right fit for today and tomorrow.
As an added benefit, after you have bought your land, you can take advantage of our one-time permanent financing solution when you are ready to build. This means you can have a one-time close and won’t need to refinance once home construction is complete.
If you want the land strictly for outdoor activities such as hunting and four-wheeling, you’ll want to ensure there is wooded acreage to attract wildlife or enough space for trails wide enough for ATVs. Unlike traditional lenders, which often won’t offer lending options unless the buyer intends to build, Rural 1st has the expertise to finance loans for this type of land use.
Step 2: Identify the Right Partners for Your Project
Connecting with experienced realtors and other experts who understand the nuances of rural living and financing can help streamline the process. A well-versed realtor will help you navigate deed restrictions or zoning issues associated with specific properties.
Once you’ve identified that perfect piece of land, work with a lender who understands and can appraise its full value. Rural 1st evaluates total acreage, buildings, and site improvements to help buyers secure greater land equity.
Our loan officers understand the land’s future potential and will help secure financing for improvements such as utility installation, erosion or flood risk mitigation, and access from the road.
Step 3: Get Prequalified
Prequalification is an important early step every borrower should take before putting in an offer on a piece of land or attending an auction. Getting prequalified for a land loan helps you know how much you can afford, lets you focus on properties within your budget, shows sellers you’re serious, and gives you an advantage by proving you’re ready to buy.
In order to prequalify, you’ll need to be prepared to share the following with your lender:
“Understanding your finances and what you can and cannot do streamlines the buying process,” says Dale Nichols, a rural real estate broker and auctioneer. “Rural 1st has been a great partner, and their loan officers give our bidders confidence to bid on the piece of land that starts their American dream.”
