Do You Need Private Mortgage Insurance?

Do You Need Private Mortgage Insurance?

Tips For Buying Your First Piece Of Land

by Luke Fields

Buying a piece of land for sale to build your commercial or residential property on is a great way to get started with real estate. You will be able to build exactly the property you wish to own, and you'll know that you don't have any maintenance issues to start out with. But buying land is a bit different from buying an existing piece of property. Here are some tips to start out your search. 

You'll Need to Have Cash

Banks don't tend to give loans on plots of lands. It's a much more tricky situation with trying to reclaim a piece of land for which a debtor has defaulted, so it's not something banks are willing to take a risk on. The point is that you will need to have cash to purchase your land; that's something to keep in mind if you were planning to pay for a home or building construction manager at the same time.

Look at What's Around

Finding the right lot for your new property is about looking at what's already built around it. Check out what the buildings on other lots look like, and make sure your new neighbors will appreciate what you're planning to build. You don't want to run into complaints while you're in the process of construction; it could put a hold on your development process.

Also, be sure that you can get the proper permits for your project. Zoning is a big issue. Whether your building is residential or commercial, the area needs to be equipped to handle your the of project.

Do Land Surveying and Environmental Testing

The home inspection is a big part of buying a real estate property. But when you only have a piece of land to go off of, your go-to tests are the land survey and the environmental test. Land surveying gives you information about the boundaries of the properties, the legal rights and responsibilities of ownership, and the potential costs of building on the property. Environmental tests will look for chemicals and other signs of unhealthy land that wouldn't support your building project.

Be Careful with Sharing Your Plans

When you have a project that you're excited about having completed, you might be eager to share your plans. But if you give the neighbors something to object to, they might be able to use the information to have your building plans stalled or cancelled. Keep the plans to yourself, and build great neighbor relationships once you're moved in.


About Me

Do You Need Private Mortgage Insurance?

Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.