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Why Land Appraisal Is Necessary To A Lender

Land appraisal is needed whenever a lender is asked to loan money based on land. Loans based on land a typically capped at 60 to 80 percent of the appraised value of the land. This will depend to a large extent on the income and credit history of the potential borrower. The lender will have more security with a land loan than with most types of loan, and that will make them more amenable to lend to people who would not otherwise be considered for credit.

Having said that, lenders do not ever want the job of taking back land and … Continue Reading