Some parts of Missouri are absolutely beautiful. Whether you want a wide open space for farming or ranching or are looking for a property that is covered with trees to create a rustic getaway, buying land in this part of the country can be a great investment.
When it comes to real estate, buying land is a bit different than buying a house. Banks usually have stricter lending requirements for land purchases. This is because people are more likely to default on a loan for undeveloped land than they are on a home loan. Land also tends to be a little bit harder to sell, meaning that the bank might have to wait a long time before recovering their money if the purchaser does default on their loan.
That means that you need to get your credit score as high as you possibly can before you apply for a land loan. Banks will be much more likely to approve your application if you have excellent credit.
Typically, they also require a much larger down payment for a piece of land than they do for a traditional home. Most banks require about 20% down for a home purchase. For land purchases, however, you can usually expect to have to put about 50% down if you want to get your loan approved. Because of that, you should start saving up for a down payment as soon as you can. The more money that you have saved, the more flexibility you will have in terms of the land that you can buy.
When you find a property that you are interested in, you need to carefully research whether or not there are any easements or restrictions that could prevent you from using the land the way that you want to. One of the most important things to check is whether or not you can actually access the land. If it is not already on a roadway, you need to make sure that you can build a road to your property. The last thing that you want is to purchase a piece of land that you can’t get to.
If you are getting ready to purchase land in Missouri, there are some steps that you should take to make the process easier. Not only should you work on improving your credit but you should also start saving up a large down payment. Once you have those two things in place, finding financing for your purchase will be a lot easier.