This article is part 4 of our “Buying Land” series.
Rural 1st has the lending expertise and rural focus needed to offer land financing packages tailored to your specific needs. That’s why we’ve developed this helpful video series for people wanting to purchase their perfect piece of land.
Let’s talk about what you need to know after your land loan closes.
Congratulations! You found and purchased your dream property! We think living rurally is the best way to live and are so happy to be a part of your journey. If you’re planning to build quickly after closing on your land loan, please make sure to talk with your Rural 1st loan officer about immediate next steps. While some customers are ready to start their construction journey right away, we’ve found many of our customers aren’t ready to build yet, which is perfectly fine.
If you know you’ll want to build in the future but aren’t sure when, we recommend starting to look for a builder. With an increased demand for newly built homes, many popular builders can have extensive waitlists which can be a year or longer in some areas.
Knowing what your preferred builder’s capacity looks like will help you determine your timeline to build. Finding the right builder is a critical component in building your dream home. We know they’re worth the wait when they can turn your vision into a reality.
Here are some additional considerations before you build on your land:
- Make sure the land has a buildable site that isn’t in a flood plain. Do your homework now so that building later won’t be a problem.
- Be sure there are no building restrictions. Depending on the property and its location, there may be setbacks and zoning laws to be aware of. You’ll want to review the zoning information to understand how the land can be used. The respective county officials can help you understand whether or not a property meets the requirements for residential development based on local laws and building codes. Although you can file to change the existing zoning on a property you purchase, you will want to first understand possible resulting tax implications.
- Be sure your future home will be accessible. Building in a convenient, accessible location will make the property more enjoyable. You may also consider factors like where the sun rises and sets and which direction the wind blows. Having a building site picked out ahead of time can help as you start clearing and improving the land.
- Is there a nearby water source? Many rural properties require drilling a well and installing a water treatment system. Check with a professional.
Whether you’re ready to build within the year, or sometime in the future, we recommend reaching out to your Rural 1st loan officer at least six months before starting your build. They’ll walk you through the construction loan process and help you understand what’s needed for the next leg of your journey.
Thank you for watching our land buying video series. If you would like more information, reach out to us today.
