Help your clients secure financing for their country homes. 

Buying rural property is likely one of the biggest purchase decisions your clients will ever make. Whether it’s new home construction or buying a new place in the country, you can gain your clients’ trust by recommending the right financing options unique to rural properties.

Help your clients make their next homeownership move by sharing the following step-by-step process for rural home loan approval.

Step 1: Submit Application

To begin the country home financing process, applicants must complete the Consumer Loan Information and Authorization for Release forms. They will also need to provide financial documents including tax returns from the past two years, most recent paystubs and an updated balance sheet. A Frontier Farm Credit consumer lending officer will work with the applicant to complete and submit the loan application.

Step 2: Credit Check & Loan Decision

After the application has been submitted, Frontier Farm Credit will order a credit report and verify the applicant’s debt and payment history. An underwriter will review the loan package to determine whether to approve the loan. If more information is needed to make the loan decision, the loan will be suspended until the information is received.

Step 3: Select Interest Rate

Once the loan has been approved, applicants will work with their lender to select an interest rate product that best fits their needs. Frontier Farm Credit offers fixed, interim-fixed or variable rates, and options to convert to another rate product at a later time. As a portfolio lender, Frontier Farm Credit is also able to offer flexible terms for rural property loans including long-term fixed rate options.

Step 4: Pre-Closing

Before closing the loan, applicants may need to submit the most recent copies of any 401K, IRA, stocks and retirement statements, copies of the most recent month’s bank statements and their homeowners insurance agent’s contact information. If the loan involves new home construction, the applicant will need to disclose specs, plans and a construction contract.

All loans require an appraisal under federal law. Frontier Farm Credit has the experience and expertise to navigate the features unique to rural property appraisals such as wells, septic systems or outbuildings. Depending on where the property is located, a Frontier Farm Credit consumer lending officer will also order title insurance or a title opinion.

Step 5: Closing

The final step to homeownership is closing day. Applicants will provide a cashier’s check for the down payment, pay other closing fees and work with their lender and real estate agent to sign all closing documents.

For new home construction financing, Frontier Farm Credit will continue to oversee inspections and disbursements until construction is complete. New home construction applicants can also take advantage of unique financing features Frontier Farm Credit offers including one-time closing to help save time, closing costs and reduce the risk of changing interest rates.

Working with a lender who has rural property expertise can help make the home buying or building experience easier and with less hassle. And, because Frontier Farm Credit financing is locally serviced, your clients can enjoy a long-term relationship with their lender for the life of the loan. Click for more information about rural home and acreage mortgages.