Farming is a good investment in the economy today as agricultural products will always have a market to be sold to. Getting farm loans may however sound like an easy thing but the truth is this is a procedure that takes longer than even getting financed for a new car. Many people wonder why this is so but this article seeks to give some reasonable explanations as to why farm financing takes long.
One thing that prolongs this process is the fact that the lenders usually require a title insurance policy to make sure that the land is valid. The process therefore begins with the farm loan lender calling the title company and requesting for a title commitment. This is document that shows the current ownership of the land and any commitments such as mortgages or deeds of trust that may be pinned to this particular property.
The preparation of this document takes a lot of time of maybe up to two weeks. Another difficulty may arise if the title commitment document has been found with some flaws. The flaws may include things like a mortgage pinned on the land, an unsuitable location that is hard to reach using a public road or if the owner has any judgments against them.
Due to the above problems, it is very likely that a person will need to hire an attorney to assist them in fixing them. This fixing also takes a lot of time. It can take another two weeks making the time spent on the whole process since the acquisition of the commitment document four weeks
When getting an auto loan on the other hand, the borrower can simply sign the back of their title and later the lender will attach alien on the automobile and in less than a day one will be able to be granted. Many people however wonder why the loan cannot just undergo the normal real estate loan procedures.
When lending an auto credit the only document needed is normally the alien. However many more deeds are needed for the property credits like the leases, assignments, mortgages, powers of attorney, affidavits and many others. All these documents really complicate the procedure and extended it further.
The time is usually spent because the experts have to do a careful study of each of the filings to determine how they can affect the real estate. The high number of filings also guarantees that there will be more problems that may be associated with the legal descriptions, wrong names, problems with the notary, the dates and many other problems that arise unexpectedly in such procedures.
This process will however be much less stressful as the lender will help you through the whole process to make it easier. However, if you want a farm loan, you must make sure that the processes are started early to avoid last minute urgency that will most likely lead to disappointments. You should also cross check your documents to make sure there are no problems because this will reduce the time for the process significantly.
One thing that prolongs this process is the fact that the lenders usually require a title insurance policy to make sure that the land is valid. The process therefore begins with the farm loan lender calling the title company and requesting for a title commitment. This is document that shows the current ownership of the land and any commitments such as mortgages or deeds of trust that may be pinned to this particular property.
The preparation of this document takes a lot of time of maybe up to two weeks. Another difficulty may arise if the title commitment document has been found with some flaws. The flaws may include things like a mortgage pinned on the land, an unsuitable location that is hard to reach using a public road or if the owner has any judgments against them.
Due to the above problems, it is very likely that a person will need to hire an attorney to assist them in fixing them. This fixing also takes a lot of time. It can take another two weeks making the time spent on the whole process since the acquisition of the commitment document four weeks
When getting an auto loan on the other hand, the borrower can simply sign the back of their title and later the lender will attach alien on the automobile and in less than a day one will be able to be granted. Many people however wonder why the loan cannot just undergo the normal real estate loan procedures.
When lending an auto credit the only document needed is normally the alien. However many more deeds are needed for the property credits like the leases, assignments, mortgages, powers of attorney, affidavits and many others. All these documents really complicate the procedure and extended it further.
The time is usually spent because the experts have to do a careful study of each of the filings to determine how they can affect the real estate. The high number of filings also guarantees that there will be more problems that may be associated with the legal descriptions, wrong names, problems with the notary, the dates and many other problems that arise unexpectedly in such procedures.
This process will however be much less stressful as the lender will help you through the whole process to make it easier. However, if you want a farm loan, you must make sure that the processes are started early to avoid last minute urgency that will most likely lead to disappointments. You should also cross check your documents to make sure there are no problems because this will reduce the time for the process significantly.