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Real Estate For Sale In Alabama-Creative Ways To Finance Your Land Purchase
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If you are looking to buy real estate for sale in Alabama you will need a much better financial statement and credit score in this shaky economic time.


If you have been looking to buy your first piece of real estate for sale in Alabama and you have not been to the bank for financing options yet you may not know just how bad the lending situation has become. One of the first things you should do before you get very deep into your real estate search is gather all your financing options and make sure you can borrow the money you need for your purchase. If you have not been watching or if you donít think the news is real or maybe if you have been out of the country the last couple years and donít realize what has happened, the banking industry is in a free for all. The first thing you should do is pull your credit yourself and see exactly where you stand credit wise and a banker should be able to let you know how much you will be able to borrow. If you are looking for real estate for sale in Alabama I will suggest going by the office of First South Farm Credit, they are one of the few lending institutions that are still loaning on rural land in Alabama and are actually very aggressively looking for good land loans right now.


Once you have started your financing search I think you will realize how much things have change in banking. I will go over a few ways you might be able to help yourself out if you are a little short on the down payment money. A couple techniques I will suggest were widely used prior to the meltdown and maybe a little harder to do now than three years ago. Cross collateralization is a very good way to use current assets to help if you donít have ready cash; the problem is the banks today may look at this as weakness in your ability to follow through with your loan and reject you outright. If you have a 401K with good equity or maybe a piece of paid off land or a house you can pledge instead of putting cash down on your purchase, one problem with this, technically that could be considered a 100% loan and you can forget that in this day of federal bank regulators. One of the best things you can do if you really want a piece of real estate in Alabama is be patient, get your self in solid financial shape and be able to put down the full 20-30% that will be required in banking today.  Work on your finances with the bank of your choice and let them help you get ready for the loan process and I would start this process at least a year prior to wanting to close on a piece of real estate.


I will suggest if your want to buy that perfect piece of real estate for sale in Alabama be patient, start your search for the land but more important start a search for your loan at least a year out from wanting to close on your deal.


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