Before you can start a farm, you need to buy land. Unless you have plenty of cash to pay for your new farm, you’ll need to apply for a land loan to bring your dreams to life. Before you can start submitting applications and getting quotes on those loans, you’ll need to make sure you have the right documents in place. Missing even one can delay your application and force you to miss out on properties you love. Here are a few of the must-have documents you’ll need to gather before you can apply for a land loan.
Release for Credit Check
Lenders always consider your credit score when reviewing your application. This means you’ll need to let them check your credit as part of the application. Most lenders will send you a release form that gives them the authority to check your score. Fill this out as soon as you can and return it to them promptly.
The Completed Application
You’ll need to submit an application with every lender you’re thinking of working with. This application will vary from lender to lender and you won’t be able to copy and paste your information from one application to the other. Take your time and fill each field out carefully and accurately.
Previous Tax Returns
Your finances matter when you apply for a land loan. To gauge your financial strength, lenders will request copies of your previous tax returns. Depending on the lender, you’ll need to give them the last two or three years’ returns in full. If you don’t have copies of your returns, you can always request them from the IRS.
Proof of Income
In addition to your tax returns, you’ll also need to provide your lender with proof of income. If you work a regular job, give them copies of your latest W-2. If you’re self=employed, copies of your bank statements, 1099-MISC forms, and any other income documentation will help showcase your financial strength. Make sure to include proof of income from each source you have, even if it’s small. The more money you make, the stronger your application will be.
Applying Takes Time
The most important thing to remember when you apply for a land loan is to be patient. Lenders can take a while to make a decision and the sooner you can submit the relevant documentation to them, the better off you’ll be. If you’re ready to start the application process, don’t wait. Contact us today.