As you have probably already discovered, obtaining an agricultural land loan has a unique collateral evaluation process as compared to the mortgage loan process. Although there may be a few more steps to it, it won’t feel that way with the right lender.
At United Ag Lending, we have trust in the individuals we work with, and we want those individuals to have trust in us, too. Trusting your lender is the most valuable asset you can have when borrowing.
So, we want to share with you the 5 traits to look for in an Ag lender. Making sure your lender has these traits ensures that your investment will be worthwhile.
Your Goals Are Their Goals
It goes without saying, but your lender should care about your goals. Your lender is working for you, so they should be excited about your plans for your new land. To an expert lender, your collaboration isn’t just about the money: It’s about the relationship.
It’s important that you feel comfortable sharing your ideas and bouncing less-developed ideas off of your lender. Since they are the agricultural lending experts, they will be able to offer input on these ideas (and encouragement too.)
They Are Transparent Communicators
In addition to being a caring, helping hand to your plans, a good lender for Ag land loans will be an effective communicator.
From the very first point of contact to the loan closing, a good lender will be updating you on your status and giving clear instructions on next steps. They will promptly answer any questions you have and provide you with helpful tips.
The communication won’t end at closing, though. A good lender for Ag land loans will continue being a resource throughout your entire term and thereafter.
They Are Reputable
Finding an authentically caring and effectively communicative lender is a great start, but that’s still not enough to make a final decision. One of the most important traits of a lender is that they are reputable and others have trusted them.
Read their reviews: Does your potential lender for Ag land loans have a history of borrowers? What were the borrowers’ experiences with this lender like?
Doing your research will ensure that your lender can be trusted with your sensitive information and your money.
They Are Connected With the Community
Agriculture is very community-oriented, so your lender should be connected with the community in some way.
These are some questions to keep in mind when researching potential lenders:
- Do they have personal experience with agriculture and buying land?
- Do they have prior experience of a loan scenario similar to yours?
- Do they understand how agriculture operates in a community?
- Can they provide you with other resources?
Agriculture cannot operate without community and support, and both of these can look different for every situation.
They Offer Customizable Programs
As people with personal agricultural experience, we understand that no agricultural circumstance is identical. A credible lender will respect this fact by customizing land loan programs to fit each individual’s situation.
A one-size-fits-all approach does not work in agriculture. Your lender should take the time to learn about you, your piece of land, and your goals. This way, they can build a specific plan that will match your needs exactly.
Find Your Ag Lender
Now that you know what traits to look for in a lender, you can feel confident in starting the loan process. You’re already ahead of the curve by doing this kind of research on Ag land loans.
Is there a piece of land you’ve been dreaming of buying? At United Ag Lending, we have the means to help you make that financial decision.
Contact us or call us if you’re ready to start the process or if you have any questions.
Still Researching?
If you want to know more about the land loan process first, check out our guide to obtaining a farm land loan.
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