Future land loan: Building relationships w/ FIs

[GatorCowboyLion]

So I'm looking to buy rural residential land next year. I hope to build a home without a builder, which is legal in Florida. The county that I'm buying in has a community bank and a couple credit unions that offer land loans. I am considering building a relationship with these three institutions so that I can shop between them for favorable terms when the time comes. I know terms for these kinds of loans are highly variable and so I don't want to put all my eggs into one basket.

I am interested if people here think there's much utility in just starting a checking, savings account, and buying a $1k CD. Would it mostly help if I get a loan or credit card? I don't really have any use for any of their loans or credit cards, and it would lower my average age of account by a small amount, I'm currently at 8 years 1 month. My credit score is 715 right now, but it should go up in the next year as some baddies fall off, and I have no baddies in the most recent several years. Anyhow, I'm at least 13 months off from application, so now would be the last time that I would want apply for credit or a small loan. Also, do community banks typically value relationship like credit unions? Thank you for the advice in advance!

[VAMortgageGuy]

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@GatorCowboyLion wrote:

So I'm looking to buy rural residential land next year. I hope to build a home without a builder, which is legal in Florida. The county that I'm buying in has a community bank and a couple credit unions that offer land loans. I am considering building a relationship with these three institutions so that I can shop between them for favorable terms when the time comes. I know terms for these kinds of loans are highly variable and so I don't want to put all my eggs into one basket.

I am interested if people here think there's much utility in just starting a checking, savings account, and buying a $1k CD. Would it mostly help if I get a loan or credit card? I don't really have any use for any of their loans or credit cards, and it would lower my average age of account by a small amount, I'm currently at 8 years 1 month. My credit score is 715 right now, but it should go up in the next year as some baddies fall off, and I have no baddies in the most recent several years. Anyhow, I'm at least 13 months off from application, so now would be the last time that I would want apply for credit or a small loan. Also, do community banks typically value relationship like credit unions? Thank you for the advice in advance!

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I would be more interested in finding and working with the bank or credit union that will allow you to act as your own GC/builder. Most lenders won't allow this unless you're a builder.

[ShanetheMortgageMan]

Opening accounts at the CUs/banks you plan on applying with likely will make no difference in getting approved for their land loan programs, which will have the same qualifying criteria for all applicants.  I'd recommend you improve your credit score to at least a 740 level though, as with land loan programs you may have lower down payment options with higher credit scores.

Are you going to be financing any portion of construction or paying for all of it with cash?  If financing, then as @VAMortgageGuy mentioned you might have a tough time finding a construction loan program that will allow you to act as the builder.  Construction loan programs are usually looking for builders who have been building homes for at least the last couple years, as lenders want builds to work like clockwork and not run into any hiccups - something an experienced builder usually has better success at.