Five Things to Know Before Purchasing a Rural Property

.

Buying a rural property can be appealing to a lot of people. Whether you’re looking for more land for your dollar or want to get away from the city, buying a rural property can be appealing for many people. However, there are a few important items to check off when looking to purchase your piece of country living.

Zoning

It’s important to check the zoning before purchasing any property. This will determine how you’re able to utilize the land,  what kind of buildings are allowed, and how they can be placed. Zoning could affect your lending options and what you’d qualify for, as well as what you could do with the property. Because of the lending or foreclosure process differences, some lenders may be hesitant to finance mortgages in agricultural or rural residential zones.

Property Boundaries

Once zoning is determined, the next important item to look at is the land itself. A legal survey requisitioned early in the process will mark your property’s exact boundaries to avoid future disputes.

Lender Policy

Many borrowers don’t realize the effect land has on lender policy. In fact, most prime lenders will mortgage one house, one outbuilding, and up to ten acres of land on a given property. If you have a second building or extra land purchased, you may need to consider alternative lenders.

Water and Sewage

Many people draw water from private wells when it comes to rural living and utilize septic tanks for sewage. To ensure everything is safe and in working order, it’s advisable to inspect the septic tank and water quality as a condition on the purchase offer. Due to the nature of rural properties, inspections may cost more than they would within a city. However, it is important as they may be a lender requirement.

Insurance

When it comes to rural properties, there are two types of insurance to consider:

Home Insurance – This may cost more than insuring city homes due to the size and location of the land and distance from fire stations and hydrants.

Title Insurance – This is vital for rural purchases and will protect you from unforeseen incidents with the deed or transfer. It will also alert you to any improper previous use of the property (such as dumping for waste).

If you are thinking about purchasing a home in a rural area, be sure to consult a mortgage specialist beforehand. They can often recommend a realtor who specializes in rural properties and knows the area best. A mortgage specialist can also help ensure you understand any differences in the mortgage process and qualifying that come with rural purchases.