Best Advise To Understand the Land Loan

Land loans are very common. Almost all the banks provide land loans. However it is really required to know in detail about the land loan before you will be able to finally take advantage out of it. During the time of the downfall the land loans are not in great demand. You will find out at least hundreds of lenders who will provide you land loans. However you have got ample reasons to decide whether which lender is the best?

If you really want to decide whether which land loan is the best, you will have to go across several lenders. After that only you will get a clue whether who provides the best lending facilities. I would like to give a list of questions which you can ask the lender while deciding whether he is best for you or not. These are some list of questions:

1.Are they providing long term fixed rate loans? You will definitely find out that that this type of mortgage will be best for you. You will definitely find that short term adjustable rate is not so good for you because the land value is always fluctuating and with variable interest rate you might end up losing a large amount of money. As far as short term fixed rate are concerned they can also end up in shock. Hence you should really ask the lender whether they provide long term fixed rate loans or not. Because this is the only loan which will make you profit no matter how fluctuating the market value of land is.

2.You should also ask the lenders that what fee they charge. They are often found charging unnecessary fees which are termed as pink fees. Hence make sure in advance that what other fee do they charge. They sometimes charge even the documentation fee, underwriting fees etc. these are really useless and you should not be required to pay for them. Hence ask your lender to cut short this type of fees if they are charging.

3.You should really make sure that what time frame the lender will takes to approve your loan. I must say that a good lender will not take more than three weeks to approve your loan. It hardly takes 48 hours to 72 hours to approve you application. The appraisal process takes not more than one to three weeks whereas the title takes only one to two weeks.

I have given you the insight of what the land loan really means. You will find it really very interesting as far as land loans are concerned. You will not take more than three to four weeks to pass your loan.