How to Acquire a Consumer Land Loan in Texas

June 7, 2022

Buying land is a goal for many Texans. Whether you want to build a home on the land, put a mobile home on the property, raise cattle or livestock, or set up hunting grounds, you have the opportunity to realize your dream if you meet consumer land loan requirements in Texas.

Texas Gulf Bank can help. We offer consumer land loans to our customers across the Texas Gulf Coast. If you satisfy the loan requirements, then you will be one step closer to realizing your goal of land ownership.

Typical Information Needed for Consumer Land Loan in Texas

For individuals looking to finance their land purchase, the first steps to get started on the road to land ownership include:

Completing a loan application.
Meeting the minimum credit history requirements of the financial institution.
Providing information that shows you have sufficient income to repay a loan.
Having sufficient funds available for the down payment required on the purchase.

At Texas Gulf Bank, we have specific loan application needs that help us better understand your viability as a potential borrower and show us that you are serious about your intentions. We request the following pieces of information to evaluate your planned land purchase, including but not limited to:

Completed Real Estate Loan Application.
Federal Tax Returns, including pertinent schedules, for the past two years, as well as W-2s upon request.
A current pay stub showing year-to-date earnings for 2022.
An executed earnest money contract for the purchase of the land from the seller.
Two forms of IDs (for example: Texas Driver’s License, passport, or Social Security card).

During our internal review, we will use your completed application, federal tax returns, bank statements, and current pay stubs to qualify you for the loan. Once we receive your completed application and initial documents, we will make a determination within three business days of whether to advance to the next stage.

We want to make good use of your time; we provide applicants with periodic updates so that you know where you stand in the application process. Because we are a local and independently-owned bank in Texas, we make lending decisions in-house to prevent a prolonged pre-approval process.

During this review, we will take a deep dive into the information you provided to ensure that you meet all loan qualifications.

Items to Consider to Increase Your Chance of Loan Approval

Our bank is driven by relationships. We care about the people that we serve, which is why we look intently at the make-up of each applicant to form strong bonds that will last for years to come. We take a look at the big picture when making a final lending decision:

Character: your credit history and how you manage paying your debts are good indicators of how you will repay your loan.
Capacity: the amount of income you earn, your employment history, and job stability show us whether or not you have the ability to pay outstanding debts.
Capital: the more assets you have, the more financially stable you are in the event an unexpected financial event occurs. Assets could include current cash on hand, the value of existing real estate less any debt owed against it, equity in a business, etc. (We also look at your assets to possibly secure the land loan.)
Collateral: the assets you own could be pledged as collateral. In a land loan scenario, we would use the land that you are purchasing as collateral.
Conditions: we base our decision on the specifics of your loan transaction, including how you will use the loan funds.

We also consider external conditions such as the economy, prevailing federal interest rates, and any political or governmental change that could impact the level of risk for our bank. The stronger your financial standing, the more likely that these external factors will not impact our final decision.

What Happens if Approved for a Consumer Land Loan?

Our bankers meet regularly to approve final loan applications. At this final stage, we may request additional information to clarify a specific detail in your loan application or financial history. Or, we may have everything we need to make a decision.

If you are approved for a consumer land loan, then we will inform you of this positive outcome on the path to purchasing land. Our loan officer will then review the terms of the loan with you.

Land loans are typically repaid monthly over an approved loan term. You can pay off the loan early with no pre-payment penalty in most cases.

Once everything is agreed to, then we will advance to funding the loan to help complete the transaction. Funding typically takes 30 to 45 days from approval. We will certainly work hard to meet your timeline in order to satisfy the seller’s requirements to complete the land purchase.

Contact Texas Gulf Bank to Start a Consumer Land Loan

Owning a piece of land in Texas is within reach. Now is the time to partner with Texas Gulf Bank for a land loan. We also look forward to furthering the relationship with you as you pursue other financial opportunities.

We encourage you to use our contact form below to get started on the consumer land loan application process. You can also call us directly to speak with an expert loan officer.

During our initial conversation, we’ll further discuss what is needed to acquire a land loan in Texas to ensure that you have clear expectations about the application process. Discover the Texas Gulf Bank difference today!

All Loans Subject to Credit Approval