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A Quick Guide to the Rural Property Loan Application Process

Finding the right loan for your rural land purchase can seem daunting, but knowing more about the steps you’ll face along the way helps. When you understand what to expect from your loan application, you can better organize your information and prepare everything you need to make the process as smooth as possible. Make your loan application more efficient with this quick guide to the rural property loan application process.

Initiating the Application Process

Your loan starts with the initial contact between you and your lender. This is the time to ask questions about loan requirements, options, and rates. The more information you gather during this stage, the easier it will be to move through the application process. Once you choose a lender and know what to expect, you can start your loan application. At Farm Plus Financial, you can submit an online application to kick off the process.

Collecting Documentation and Getting Pre-Approval

After your initial application, your lender will contact you to discuss additional documentation, qualifications, and other requirements. Once your lender collects all the necessary information—including financial documents, your business plan, and more—they can begin processing the application. They will also pull credit reports and other information so they can ensure you meet all the requirements for your loan. If you do, then you’ll receive pre-approval and move on to the underwriting stage.

Reviewing Your Loan Package

After pre-approval, your loan goes to an underwriting team. Underwriting is the process of verifying all of your loan information before final approval. The underwriting team will review your financial information, including proof of income, assets, credit reports, and more.

They might also ask for additional information or clarification from you depending on where you live, what you do, and what kind of loan you’re applying for. Quick and transparent communication is essential for a smooth and efficient underwriting process, so be ready to answer any questions your lender may have for you.

Appraising Your Land

The next part of the rural property loan application process is the appraisal stage. Before you can sign on your loan, you need a farm loan appraisal that states the fair market value of the land you’re trying to buy. The appraisal helps ensure that your loan amount matches the value of the property.

Farm Plus Financial works with a network of state-certified appraisers across the country. During the appraisal stage, we will present you with a list of bids from local appraisers. You can then choose from this list to find an appraiser and a timeline that works for you.

Closing Your Loan

After reviewing all your documentation and the appraisal, your lender will issue final approval and lock the loan rate. Your loan then goes to your local title company. From there, the loan is yours. All that’s left is signing paperwork, completing transactions, and moving forward with your agricultural business.

Farm Plus Financial strives to make rural land financing as stress-free and accessible as possible. If you have questions about our loan options, rates, or the application process, reach out to our team today. We’ll walk you through every step of the process to ensure you feel secure and successful regarding your financing options.