Factors that influence the achievement of a land loan

[Susan06]

While trying to research about what would a bank look into about a potential borrower in case of a land loan i found some important factors that usually determine the borrower's potential chance for recieving a loan in any country you need for the down payment on a land loan

1. Repayment capabilities

2. The appraisal and/or purchase value

3. Collateral value from land already owned

Hope this could be helpful to someone along the way?

 

[Bookwormlux1]

The appraisal value of the land is very important. No one would allow you use a land that is sited in an area that has no prospects of economical development as a collateral for taking a loan.

 

[Nimra Saeed]

While trying to research about what would a bank look into about a potential borrower in case of a land loan i found some important factors that usually determine the borrower's potential chance for recieving a loan in any country you need for the down payment on a land loan

1. Repayment capabilities

2. The appraisal and/or purchase value

3. Collateral value from land already owned

Hope this could be helpful to someone along the way?

I have found that some of the important factors that usually determine the borrower's potential chance for recieving a loan in any country is you need for the down payment on a land loan and fullfil the conditions
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While trying to research about what would a bank look into about a potential borrower in case of a land loan i found some important factors that usually determine the borrower's potential chance for recieving a loan in any country you need for the down payment on a land loan

1. Repayment capabilities

2. The appraisal and/or purchase value

3. Collateral value from land already owned

Hope this could be helpful to someone along the way?

I have found that some of the important factors that usually determine the borrower's potential chance for recieving a loan in any country is you need for the down payment on a land loan and fullfil the conditions

 

[Setho]

Wow I found this to be a very helpful information about the terms to seek a land loan but my concern is why would they want all those terms if you know what to do with the land. I understand though even with the appraisal , because it is foolish taking a land that you might sell for lower than the amount you mended out in the first place.

 

[Ojonuyo]

To achieve a land loan, you must have a steady source of pay back. No one leans for free but engage to make profits. Ensure the acquired land is well positioned most especially in urban areas and used for the right activities, you can use such land for real estate deal

 

[Ralphjoe]

Before a bank accept to grant your loan request, they must have valued the land that you want to use as collateral, if they feel the land is worth the amount of the loan, then they will grant you the loan.
Banks are very careful in giving out loan because most people default in their loan payment.

 

[Ridorz]

This is a good article from you, it will helpful. And then the location of the land and its size will determine how to qualify for loan. But I can use my land to get loan from bank, because is dangerous.

 

[WhiteHouse]

Alot really, Depending on your city, the chosen bank or Non-Banking Financial Company (NBFC) will require you to satisfy the minimum income condition. This could be anything between Rs 30,000 and Rs 50,000 per month.

 

[Abibatabosede]

The first thing to be considered for for land loan is the income of the client,if the calculation of the loan repayment period doesn't fit into the client's income or more than the client's income,then automatically he can not get a land loan.

 

[Seun4luv]

The factors are firstly,Credit Score. The higher your credit score, the lower the rate.
Credit History.Employment Type and income.Loan Size.Loan-to-Value (LTV).Length of Term. Payment Frequency.

 

[MastetG]

To determine exactly how much you can afford in mortgage repayments, they will look at your income as well as any outstanding debts and other commitments you have. As such, if you are buying a property with another person your repayment capacity may be greater, which would mean greater borrowing power.

In addition to looking at your income, your lender will also review your current commitments, which includes all of your outstanding debt, credit and store cards, personal loans, car finance and any other ongoing financial commitments you may have.

 

[Adexgrace]

Land loan is a very good way of improving ones standard of living, so to achieve land loan one have to plan properly and also organize the best way so as to result and yield a good output and also as to facilitate the achievement of acquiring the land loan.

 

[Holluwaphemmy]

Loan is not a really thing to venture into because of you are not financially stable and capable, you may not be able to repay. The criteria to be met when opting for a loan is as follows:
1. Financial abilities
2. Investments
3. Assets
4. Your guarantors financial ability
5. The state of your bank account

 

[Oloritoks]

The factor that affect the achievement of land loan is where the environment of where the land is located can go a long way affecting the success of the loan because the land will definitely appreciate.

 

[Trexxxy]

All these things you listed are requirement to get a loan at the bank, also another thing is the person must be a customer of the bank, the bank will do a thorough check of the person's account to see the total cash flow and outflow before even setting terms of the loan.

 

[Donkiz]

Most banks in my country, when you want to buy a property and you need a loan from them, one of the things they check is if the property will start yielding profits within the next 60 days, if no they will request for a different collateral from you. If yes, they will give you the loan on the condition that the property original documents will be kept in the bank's vault until the loan is fully liquidated.

 

[Adeyoola7]

Those are factors that affect how much you can borrow:
Your income & commitments: ...
Your lifestyle/living expenses: ...
Credit history: ...
Property deposit: ...
Home loan type, term and interest rate: ...
Assets: ...
Value of the property:

 

[EMMANUEL]

1. Proof of income. It's not enough to simply state your income. Some lenders want to see proof, either in the form of pay stubs, bank statements or even old tax forms.
2. Investment statements. Some lenders may also want to see 401(k) or IRA statements, "particularly for those who are retired and don't have an income," says Mikel Van Cleve, director of personal finance advice for USAA Bank.
3. Employment history. Hyde says subprime lenders often look for a stable employment history when weighing the likelihood of a borrower being able to pay back a loan.
4. Housing history. As with employment, lenders are looking for stability when it comes to housing. Frequent moves could indicate money management problems or increase a lender's chances of not being able to track down a borrower who defaults on a
loan.

 

[joy101]

Before you can achieve a loan from your land, you must have steady source, before bank can accept your grant for loan they must valued your land for collateral, they will accept the collateral if the land is worth to the amount of the loan.

 

[Nadistik01]

I don't really like loan. And also, loan is not a really thing to venture into because of you are not financially stable and capable, you may not be able to repay. The criteria to be met when opting for a loan is as follows:
1. Financial abilities
2. Investments
3. Assets
4. Your guarantors financial ability
5. The state of your bank account.
Loan in some cases also helps alot