Application Process to Receive a Farm Loan

Sharing buttons:

all right so you've decided that you

want to purchase something whether it's

real estate cattle equipment and your

first question is what is the loan

application process the first thing you

need to do is gather up your own

financial information and depending on

the size and complexity of your loan

request we're going to want three to

five years of tax returns now as a young

beginning farmer we understand you might

not have three years of tax returns if

not bring in as many years as you can

and we'll work for it from that point we

also will need you to fill out a balance

sheet and you can refer to our balance

sheet videos also on this YouTube

channel that tells you how to fill out a

balance sheet or you can come in and we

would be glad to assist you

so after you've gathered up your

financial information your tax returns

and balance sheets you'll come in and

meet with the FCS financial loan officer

the loan officer is going to ask you

several questions about your operation

we want to make sure we fully understand

what we're getting into before we loan

you the money so be ready to ask or to

answer a lot of questions what we're

going to ask you if you have a legal

entity or a trust if so we're going to

also want to see the documentation on

that your operating agreement your

Articles of Incorporation if you file

tax returns for those if you own greater

than 50% ownership of a another entity

we're going to want to see those

financials as well after meeting with

you we're going to establish what

collateral what terms what you want out

of the loan and what we're willing to

offer you will discuss the down payment

requirements and so forth and then after

we have all the information that we have

requested from you to make a credit

decision we will make our credit

decision after our credit decision may

is made Jeremy what are the next steps

so once you get the phone call of the

weather saying hey you're approved

you're ready to move forward we're not

done just yet there's still going to be

some more pieces to the puzzle before we

can get to that ultimate day at the

closing table once that approval comes a

few things that we're probably going to

need pretty quickly are going to be

verification information and the legal

description and a contract if we haven't

already received that once we get the

legal description and the verification

information and the contract we're going

to be able to move forward on two

important pieces of that loan

application and that's the appraisal and

that's the title work the appraisal is

establishing the value and so that's

sent off sometimes to an in-house

appraiser sometime to another appraiser

and that title work is sent off to the

title company where they're verifying

that that individual has the right to

sell that property and that in fact you

can take ownership of that once we get

the appraisal and the title work back or

pretty much on the home stretch where we

can look down down the end of that road

and say yep it's time to close just in a

matter of a week or so depending that's

not to say there isn't issues that

sometimes come up with appraisals or

title work

so do be aware there could be other

hiccups that come along the way but

we're here to work you work with you

through those so again after the

approval title work and appraisal is

needed some verifications legal

descriptions a little bit more

information is probably going to be

needed before we get to that final day

of closing

typically depending on the loan we can

close on a real estate loan within 30

days barring that there's no issues with

the title work of the appraisal and for

a shorter term loan we can for equipment

we can typically closest in a couple of

days there's there are always problems

that can arise so that's not set in

stone but that's what we typically aim

for if we are working with the FSA

however sometimes those loans do take a

little bit longer to close because

there's actually two different companies

doing their due diligence and making

sure all their paperwork is prepared if

you are working with the FSA they also

do require a contract before loan

approval so that is something you would

have to have in hand if you're working

with the FSA