Getting a new farm may be a very good investment but sometimes a person may need money and decide to get a loan with their farm as collateral. Getting the farm loans may however come with a lot of difficulties as the process consumes a lot of time. It is even longer than getting a motor vehicle loan. Many people do not understand why this happens but the following is an explanation for the long time taken to complete these processes.
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.
Because of all these problems, a person may need to get the help of attorneys to help fix them. The fixing of the problems may also take some time. So the time take to get the commitment document plus the time spent fixing these problems may amount to a whole four weeks.
The process of getting an auto loan on however is much simpler and less demanding. All the financier will ask for is the title document with the name of the borrower at the back. The financier will later put an alien on this car then in a short span of time the credit will be accepted. Many people nonetheless do not get why one cannot simply get the conventional real estate kind of loan.
When borrowing an auto loan the only document attached is usually the alien one, however many more documents are required for the property loans like the leases, mortgages, assignments, liens, powers of attorney or affidavits among others. All these filings really complicate the procedure and make it longer.
More time is usually needed for the lenders to study all the filings attached so as to see if they can affect the loan being borrowed. When they are being studied, there are also more problems that arise and make the process even more complicated like the legal descriptions, notary problems, wrong names and many other unexpected difficulties that usually arise.
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.
When you want information about farm loans, you can go to our web pages online here today. Details are available at http://www.farmloancenter.com now.
