Land Refinancing – 5 Factors to Consider
Just what is land refinancing? Much like mortgage refinancing, this is where instead of refinancing a house, one refinances some land. So what’s the difference? The criteria are slightly different when you refinance land. These requirements vary from state to state and change over time, so be sure to consult a professional before making any decisions. However, do not let this discourage you from refinancing your land. it can get you the money you need to develop the land and even possibly reduce your current loan payments.
There are five main factors you should look into to see if land refinancing is right for you.
First, of course, is LOCATION LOCATION LOCATION! Is the land near the beach or a prison? The right location can determine your prosperity. Look at other properties around the area to help determine the value of your land.
Second, what is on this land? If you have a house or other structure on the land then a full appraisal is a must. Usually, the more valuable the structure, then the more valuable the land. An appraisal service can help you determine just how much your property is worth.
Third, are you the legal owner of this land? You MUST have your land contract recorded in the Country Clerks Office. In fact, some banks require this before you can refinance your land. This can take some time so be sure to do this early.
Fourth, be sure to have your past mortgage payment documents. This will save you tons of headaches and help you protect yourself from any legal liability.
And finally, DO NOT BE LATE PAYING YOUR PROPERTY TAX!
Follow these guidelines to help you get the most out of land refinancing.
