Road to Building a Home ::: The Lot

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Acquiring land is going to be your first step in building a home. There are many things which need to be inspected and researched before making an offer on a land, that’s why it is especially important to work with an experienced realtor if it’s your first time buying land. If you're going to be applying for a construction loan later to build on the home, you want to be sure that the land does not exceed 20 acres, and that the parcel does not have an existing home on the lot. If the lot you want does happen to have something like a mobile home on it, you have two options. The first is to remove the home before building. Your second option would be to short-plat the property, leaving the new building site on its own parcel. Give me a call if you have questions about a specific lot.

The following information is about lot financing. Depending on when you plan to build will determine if you want to use a land loan or not. If you plan to build immediately after you purchase land, the purchase of the property can be done at the same time as the start of your construction loan. If you want to secure land now, and build in a year or so, you should use a lot loan for financing.
Lot Financing
Once you have found a piece of land that meets your requirements, the first step will be getting you pre-qualified, just as you would need to make an offer on a home.

The amount you will need for a down payment can range from 25% to 35%, depending on the size of the lot and its existing utilities.

Aside from the down payment, there are also a few third party fees involved in financing a lot; These required third party services will also give you more knowledge about the lot and its history. The process of financing land is a bit simpler than financing a home if you have a knowledgeable lender working with you.

If you’re interested in buying a lot and would like to finance part of your purchase, give me a call and I can go over some more detailed information with you.
If you want to buy a lot and start a construction loan, please look here for what to expect in preparation

 Maverick Johnston 
509-230-0768
NMLS ID #1668965
Location: Spokane, WA, USA

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