Land financing calculator
Land financing calculator
To finance land can be very hard to get because most lenders sees it as very risky thing to do. Land financing calculator will definitely help you to analyse the data and money in the chapter of land financing. Before a lender could allow an individual to finance the land, the individual must be able to convince them with the promise of paying the money with interest to the lender.
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You can finance a land for as long as ten years but can also last for 15 years in some banks or lenders. Ways to convince the lender is by giving him or her a very good explanation about your plan on the land and the necessary information about what you want to use the land for. Lenders will find it convenient and convincing if the purpose of the land is to build a company on it to start business of your own.
They find it relaxing because they believe you have source where their money can be coming from. If it is for you to build house for living, you will have to convince the lender on how you would be paying the money back with interest. To do this, you might need to provide information on your personal income and how you get your income spent.
8 Steps to finance a land
- The first general step is getting the land surveyed. For whatever purpose you want to use the land for, get the land surveyed if it suits what you want to do with it. Surveying the land makes you to see whatever the problem the land is having. Survey also reveals all the free access for neighbours to pass through the land or check whatever is on the land and any hazardous topography on the land. If the land can be flooded or it is a flooding zone or pathway, the survey of the land shows them all to get the survey of the land, you would need a surveyor and a lawyer in some case. And in some cases instead of getting a surveyor to do that for you, you can simply ask the lender of the land for the survey of the land.
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- Another thing to do is to get the zoning laws examined because your purpose for getting the land or whatever you want to use the land for might not be in the zoning law that is what the land is to be used for is not legalize in that zone. To get this zoning law, you can just go to the municipal that is government office to go through the records of the zoning law for that particular zone. You might need to look for another zone that has what you want to use the land for legalized.
- Get the improvements on the land noted down. If it is going to be a land good for what you want to use it for will be able to get financing it. The assets on the land can also help in raising funds to finance the land. For an example if the land has a lot of grasses, you can allow herdsmen make their herds graze on it and in return the herdsmen pay you. You can use the money got here to finance the land. If the land also has timber, this will generate a lot of funds to finance the land as you get companies that uses timbers in producing there products like books, and woods to get the timbers off the land by paying you agreed money.
- You can compile all your information placed in one place as it might be needed in securing loan from lenders to finance the land. Land financing calculator will get you all the data and then you can plan your funds for securing loan etc.
- You must hire a lawyer to help you get things validated especially when you are buying a raw land. Before you take any step in start financing the land, a professional legal practitioner such as lawyer must be informed and hire.
- Now you can decide to propose an offer on the land to the seller. Make your aim loan. Let him know you will have to be financing the land. Get him to tell you the actual price of the land in other for you to know how much you would be needing to finance the land
- After validating things with the seller and having agreement to be financing the land with a particular interest rate, you can look for a lender to loan you money to finance the land. You have to get the information compiled together about the land to the lender to convince him to loan you money to finance the land.
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- Try as much as possible to use the land to generate funds in other to pay the lender that gives the money for financing the land. You can get the value of funds via land financing calculator. It is quite a simple task to analyse.