Towing level

[Richard]

With a 2" drop hitch I am almost level when unloaded(maybe 1/2" to low).
     My question is that when loaded I will need a 1" drop to be exactly level. How important is being "exactly" level? If it is were can I find a class three 1" drop?
Richard

[gsm x2]

From my father-in-law who sold trailers for years.

Level is best.  If you can't be level, it is better to be slightly up than it is to be down.
 
gsm x2

[mike4947]

The standard for towing level is "level +/- one inch"

As for a one inch drop, that'll be tough to find. The standard minimum is a 3/4" rise and flipped to a 2" drop.
 
One solution is what's called an extended Ball. Instead of the usual 2 3/4 to 3" height it's 4" tall. Effectively reducing the drop or increasing the rise by about an inch.

[tlhdoc]

If you are with in one inch of level you are fine.

[hoppy]

The Coleman owner's manual states the trailer tongue should be within 1" of level (above or below level) at all times.  Towing the trailer on a greater incline will cause premature tire wear.

  Sounds like you are right in the ball park.