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Buying Another Investment Property?

Once again my husband and I are contemplating the purchase of property in North Carolina. We already own one home on the Outer Banks, but with prices at five year lows and interest rates in the 4-5% range it’s hard to pass by properties without at least considering a purchase.

At this point in time I’m not certain that a bank would approve financing. I placed a call to our current lender to get the skinny on the process of buying a vacant lot, (we’ve never done that before), and the requirements for acquiring a loan on a property without a house. Unfortunately, the loan officer didn’t call me back this afternoon, so I decided to Google instead.

Strangely enough I didn’t find a ton of information on the topic. I guess most people purchase homes, not vacant lots. I did discover that the loan term cannot be longer than 15 years and that a 30% down payment will be required.

Our banks pre-approval website didn’t support lot purchases, so I couldn’t find out whether or not we would even qualify for a loan. I plan to call our lender back tomorrow to see if they can run a query over the phone.

Of course if we can’t qualify for a loan than our quest stops here, but if we do qualify my husband and I will need to rake over the numbers to see if we really want to proceed.

Ever time we’ve purchased a property I’ve been both unbelievably excited and slightly terrified all at the same time. There is so much excitement in buying a piece of property, but so much trepidation in terms of making the monthly mortgage payments while still paying for all of life’s necessities.

Pia @ philippine real estate

Tuesday 20th of December 2011

I agreed that buying any property can be an exciting time of life and is a largest investment that one can make that's why buyers should make smart decision regarding this.

Kevin

Saturday 17th of October 2009

If you have any questions about buying a lot or home in the Outer Banks, I would be happy to answer them. I am a local Outer Banks Realtor and can also provide you the name with some local lenders who are familiar with the lot buying process.

Heather

Wednesday 14th of October 2009

We purchased a lot last year and were required to put 50% down (and we both have excellent credit ratings, so it's a bank policy not a punitive measure). To build on the land, we need 20% in cash/equity so the 50% down on the property puts us closer to the 20% on the total house value.