The Real Estate Encyclopedia
What is Involved when Buying Land?
Category - Home Ownership Questions - Building Your Home FAQ's
Buying land is not much different from buying other property, except that banks may not readily lend money for the purchase of raw land. If you do not have the cash to buy the land, you may check if the seller will carry a note. This note can be paid off, when your construction loan is approved.

You may also check with local banks, if you are buying acreage in the country. Often local banks are more likely to provide loans for the purchase of raw land in the community they serve.

Your purchase contract for raw land should always include a due diligence contingency, which allows you to bring your builder and have the soil tested, if a septic system is required, for drainage or to avoid purchasing rock or granite, which may not be suitable to build, resulting in additional cost to remove the rock.
 
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Home Ownership Questions - Building Your Home FAQ's
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