Once you have chosen the property you want, whether it is a lot or a house and lot, the next thing to think about is financing. There aren’t many people with enough cash lying around to purchase a house and lot up front. For the majority, financing is the way to go.
What does financing mean, exactly? It means you apply for a loan, use the lot or house and lot as collateral and use the proceeds of the loan to purchase the property from the developer. There are a few things to remember with regard to loans:
No lending institution will give you a loan equal to the market value of the property you wish to purchase. The property will be appraised and the loan will be anywhere from 50% to 70% of the appraised value.