THE FIRST STEP TO BUILDING YOUR NEW HOME
Lot and Land Loans : Part 1
The Dallas-Fort Worth metropolitan area experienced a 10.1% population growth rate from 2010 to 2015. Significant population growth has continued to occur since 2015 and is projected for at least the next decade. In addition, according to the U.S. Bureau of Labor Statistics, the DFW metro area had the highest job growth rate and most jobs added from November 2016 to November 2017 of the 12 largest metropolitan areas in the US.
What this means is that more and more people are trying to escape the congestion of downtown living and move to the suburbs or maybe a more rural setting. Given the current shortage of existing homes for sale, many people are turning to local builders to build a new dream home for their family. The first step in this process is to find the dream location for your family’s new home.
LOT OR LAND
If you are looking to remain in a more urban area, typically you will find a developed lot in an existing subdivision. You will currently find numerous new subdivisions in planning or early development phases that may also interest you. In either case, typical subdivision lots should come with all utilities such as power, water and sewer hookups. If you want a more rural experience and community, you may be interested in purchasing an undeveloped tract of land from two or more acres. In either case, there are a few things you will want to do in advance of signing a contract.
- COMMUNITY - DETERMINE IF THE GENERAL SURROUNDING COMMUNITY OFFERS WHAT YOUR FAMILY NEEDS AND WANTS. CONSIDERATIONS INCLUDE QUALITY SCHOOLS, HEALTHCARE AND SHOPPING.
- INFRASTRUCTURE – DOES THE LOT OR LAND PROVIDE ADEQUATE ACCESS TO GOOD ROADS, WATER AND UTILITIES, INCLUDING HIGH SPEED INTERNET? IN MANY CASES, RURAL LAND AND LOTS MAY REQUIRE THE INSTALLATION OF A WATER WELL AND SEPTIC SYSTEM AND ALSO TYPICALLY REQUIRE A MINIMUM OF TWO ACRES FOR A HOME SITE.
- EASEMENTS AND RESTRICTIONS– IT IS ALWAYS IMPORTANT, ESPECIALLY WITH LARGER TRACTS OF LAND, TO REVIEW WHAT POTENTIAL PROPERTY USE RESTRICTIONS MAY APPLY. IN ADDITION, IT IS IMPORTANT TO RESEARCH WHAT EASEMENTS COULD IMPACT YOUR PROPOSED PROPERTY. OIL AND GAS, PIPELINE, UTILITY, DRAINAGE, AND RIGHT OF WAY ARE ALL CONSIDERATIONS, ESPECIALLY WITH RURAL TRACTS. YOU WILL ALSO WANT TO INSURE THE PROPERTY IS NOT IN A FLOOD PLAIN.
- SITE INSPECTION – ONE OF THE MOST IMPORTANT THINGS YOU MUST DO BEFORE SIGNING A CONTRACT IS TO WALK YOUR ENTIRE PROPERTY. WHAT TYPE OF GROUND COVER DOES IT HAVE? ARE THERE ANY SURFACE ISSUES OR DRAINAGE ISSUES? WHAT DO THE VIEWS OF YOUR NEIGHBORS LOOK LIKE? YOU SHOULD VISUALIZE YOUR FUTURE HOME AND THE LAYOUT OF THE HOME ON THE PROPERTY, PAYING ATTENTION TO WHERE THE SUN WILL RISE AND SET AND WHAT DIRECTION THE WINDS WILL BE BLOWING ACROSS YOUR PROPERTY AND THEREFORE YOUR HOME. DOES IT HAVE THE CHARACTERISTICS YOU ARE LOOKING FOR?
The process of building a new home can be a lengthy one. That’s why we’re continuing this series on lot and land loans next month. Make sure to stay tuned to our financial resources blog to learn how to finance your lot and land loan.