A person who finds it difficult to arrange for money to pay the down payment for his home loan can use land to sort things out. It is very much possible to use the land to pay the down payment but there are a few important things that an applicant needs to consider and the most vital out of them is the valuation of the piece of land.
In order to get the real value of the land, the borrower can rely in a builder, they can provide a very precise estimate of the land, also, the applicant needs to provide original title deed in order to authenticate his possession over that land and which is very important.
Sometimes, when both the parties are not able to arrive at a decision regarding the valuation of the land, the lender might ask for some extra amount to be paid in cash. It is also important for a borrower to know that a piece of land where some construction work has already been done is bound to fetch more valuation than the one where nothing like that has been done.
Apart from that, the borrower is required to pay all the expenses related to the loan including the closing costs. So, a person who wants to utilize his land to pay the down payment must consider all these facts first.
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