The today’s market allows for easy access of funds to get your farm financed. However, it might take a few steps and guidelines to get your farm financed. We provide you, in this article, with a few rules and tips that will help you secure finances for your farm.
Credit history. Your credit history depicts your ability to repay the finances and thus irrespective of the type of land or the institution you want to get the finances from; your credit will play a significant role in the financing decision. Any lender will first require knowing whether you be able to repay the loan and they can first do that by examining your credit score and the history of your previously paid or unpaid credit accounts. It thus important you do every effort to safeguard your credit score by ensuring that bills are paid on time and of course before applying for financing take time to improve your credit score if possible.
Financing institution. It is important that you match the type of financing provided by the lender to the type of property you wish to finance when looking for a lender. Land can be categorized as private farm land, ranch, agricultural farm land or commercial farm land. Check that you have the official documentation for the property and be sure to look for a lender dealing with that specific type of property. We have lenders dealing with financial assistance with all types of properties while other only deal with ranch farms not agricultural farms.
Private Lenders and banks. There are many banks, private lenders and credit unions that specialize in financing farm properties though qualifications for approval will differ from one lender to another. You can make an inquiry with the respective financial institution and a loan specialist will give you the details of the credit score required, maximum and minimum number of acres that can be financed and other specific details for loan approval. A local bank or credit union can sometimes have greater flexibility in lending requirements for a farm property that is located in the community that is serves than a national bank. Though they offer higher interest rates, individual investors and private financing through hard money lenders might come with flexible approval rates.
Visit SW Ranch Sales for more information on ranch and farm land financing.