123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Factors To Keep In Mind When Applying For A Land Loan

By Author: Aishwarya Mahurkar
Total Articles: 291

A land loan is offered by financial institutions for individuals who wish to purchase land for residential purposes. The increase in the price of real estate has made it difficult for individuals to afford purchasing land with their savings alone. Hence opting for a loan for land purchase is the best source of finance available. There is however a number of factors one must keep in mind to ensure they get the best land purchase loan available:

High credit score

Purchasing land is an expensive affair and hence requires additional finance through the help of a land purchase loan . However, most financial institutions do not approve all applications for such loans. Hence having a high credit score is crucial to ensure that your loan application is approved. A credit score gives the financial institution the required information about the individual’s buying habits, past loans etc. All applicants should try to improve their credit score to get a higher loan amount.

Outstanding debt

The amount of loan the applicant is currently repaying also plays an important role in the decision process. One should try to reduce the amount of loans they are currently indebted for. This not only makes it easier for the financial institution but also puts a lesser financial burden on the borrower and makes repayment process simpler. Before applying for a loan for land purchase, one must try to repay any outstanding loans. This also helps improve one’s credit score.

Down payment

To get a more affordable land loan, one should try to put in a higher amount as down payment. This makes the plot loan more affordable as the borrower ends up paying a lower amount each month as EMI. Sometimes down payment may also convince the financial institution to charge a lower interest rate.

Tenure of the loan

Financial institutions usually offer a tenure period of one to twenty years for a land loan. Depending on one’s requirements, they can choose tenure of their choice. A longer tenure means that the monthly EMI charged will be lower. A shorter tenure however means that though the EMI charged in higher, the burden of the land purchase loan will be for a shorter period of time.

When you are planning to purchase any plot of land, before applying for a loan with the financial institution, one must conduct enough research to ensure the land purchased is not agricultural land or a disputed piece of land. Ensure that you have all the relevant documents and a high credit score to ensure that your loan for land purchase application is approved.

Author Bio :

Aishwarya Mahurkar is an experienced writer concerning the housing finance industry. Her articles help in informing her readers of the processes that cover land purchase loan, interest rates required documents etc.

Total Views: 101Word Count: 458See All articles From Author

Investing / Finance Articles

1. How To Claim Unclaimed Fixed Deposits From Banks
Author: Arwind Sharma

2. 12 Month Payday Loans Direct Lenders
Author: Carol Adams

3. Where To Look For Ongoing Projects In Mumbai In 2017?
Author: Mira

4. Benefits Of Hiring A Tax Accountant
Author: Karen Lee

5. Impact Of Gst On Manufacturers And Their Distribution Networks
Author: Rahul Sutraj

6. Quickly Find Ideal Program For Commercial Lending In Atlanta
Author: John Bairstow

7. Why Emv Credit Card Terminals Are Necessary For Business?
Author: Satya Nadella

8. Get Set For A Great Retirement Life
Author: Deepesh Reddy

9. Payday Loan In India, Payday Loan India, Payday Loans India
Author: Mayank Aswal

10. Mashreqpay Program To Ease Your Personal & Business Life
Author: Jeff Usman

11. Maximize Your Profitability With Trade12 Trading Services
Author: Trade12

12. The Best Stock Market Advisory Services Discerns The Best Time To Invest The Indian Stock Market
Author: Dharmesh Patel

13. Opt For Sebi Approved Stock Option Advisory Services For Better Investment Security
Author: Dharmesh Patel

14. How To Find Best Mortgage Loan Software
Author: sapana rathod

15. Unravel Your Taxation With The Accomplished Cpa In Memphis Tn!
Author: Garrett A. Surles

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: