Board Topic: getting a loan
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getting a loan

Posted by: Christina Surgeon Apr 22 2004, 09:40 AM
I am a 21 year old, single, college student. I am interested in buying some land (about 15 acers). I have never tried for a loan before other than a school loan. I have no idea what I am doing and am afraid of making a mistake an getting myself into something i cannot handle. Any advice or information is appreciated.

Posted by: loanuniverse Apr 22 2004, 02:42 PM
Christina:

Well there are a lot of factors that will influence your capability of obtaining credit for this purchase. The following are off the top of my head, and are probably popping up in the order of importance to someone like me looking at this from the point of view of commercial credit assessment.

First, I need to know how much you are looking to borrow. It is one thing to look for a loan if you only need $15,000 to buy the land. It is another thing to look for a loan where you need $300,000 to buy the land. If you are looking for a relatively small amount of money, I might even recommend that you go with some kind of personal unsecured loan. It is much faster that way with less fees. On the other hand, you might not have access to that much in unsecured credit….. It is all about how it fits for you.

I would also like to know how much you are buying the land for and what kind of money you have for a down payment. Frankly, I would see a twenty-one year old with limited credit experience and assuming no tangible experience in real estate investment as a big risk.

Do you have any other resources that can be used to obtain a loan Look at this as what assets do you have or what other resources can you tap that can provide you the money that you need. Example: You need $25,000 and can convince a relative to pledge a $25,000 CD for you to get a loan. Get creative…..

What plans do you have for this land? The worst answer would be that you are holding it solely to speculate on the possible increase in value. You could be looking at many years before you can see a chance to sell at a profit.

Honestly, most mainstream lenders will not do these types of speculative loans. This narrows your choices a bit and might get you a loan with a less desirable one.

Hope this helps.

Posted by: wellsfargo1 Apr 25 2004, 08:46 PM
Christine, You go girl:) First of all I think its great your stepping out, I would like to help.
I am a mortgage consultant and if you have any questions I would be happy to help you any way I can. Just shoot me an e-mail. I will help you the best I can and good luck to you.

Cindy smile.gif
email

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