The terms “lot” and “land” can be quite similar, but in the realm of construction, there are big differences. First of all, all lots can be considered land, but not all land can be considered lots. And here are the definitions:
The lot is a property ready to build a house. It is usually provided with all public services, including water, sewage, gas, electricity, telephone, etc. However, if they’re not on site, they’re not that far away.
The land is a property without habitable structures. A raw land is a term that defines a property that is not yet ready to build on.
The best choice for you is to buy a lot. It is much cheaper and helps you get a construction loan much easier. A raw land also requires additional expenses to make the land habitable, and the additional costs are very high. It also involves spending a lot of time and energy.
All of these factors influence the lender’s decision when analyzing your loan score. And there are high chances that you will not get the desired loan due to uncultivated land.
In the case of raw land, banks consider the risks to be higher and fewer banks offer a loan in such cases. A piece of virgin land is also less marketable than a finished lot and therefore fewer buyers are eager to invest their time, money and effort in said property.