How Long Does the Agricultural Land Loan Process Take?


If you plan to buy agricultural land, you likely need financing to make it happen. Because agricultural land financing is different than getting a mortgage, you should know how the process works and how long it takes.

Compare Offers from Several Mortgage Lenders.

Of course, the length of time it takes depends on the lender and your situation. How cooperative you are with the lender and how quickly you provide the necessary documentation also play a role. We will give you a general idea of how long each step takes to help you make the most of your loan, though.

Get Preapproved

One of the fastest ways to speed along the approval process is to take the time to get preapproved. This gives the lender a chance to look over your documentation and decide how much they think you can afford. You will provide the lender with the initial documentation, such as your income docs, in order for them to decide. How long this process takes the lender depends on their workload and the complexity of the case. You can plan on as little as a few days and as much as 2 weeks.

Once they preapprove you for an amount, you have gotten a large chunk of the work out of the way. Once you find a property and submit an executed purchase contract, the lender can complete the process. This could cut your loan process in half if you do it right.

Getting the Appraisal

Once you find the property you want to buy, the next step is the appraisal. This step is outside of the lender’s hands. They order the appraisal, but then you are on the appraiser’s timeline regarding how quickly he actually does the appraisal. If there is a building on the land that the appraiser must have access to, you are also at the mercy of the seller and his timeline.

Click to See the Latest Mortgage Rates.

The average time that it takes to complete a land appraisal, though, is usually 2 to 3 weeks. Of course, this can vary by appraiser and location. It’s best to ask your appraiser his typical turnaround time so that you have a good idea of what to expect.

Getting the Title Work

Another step that is slightly outside of the lender’s control is the title work. The title company must conduct a title search to make sure the property is free of liens and can be sold. If there are not any issues with the title search, the title commitment can be prepared in as little as a week. If there are issues that need to be cleared up, though, it can take up to a month to get everything under wraps.

Completing the Loan

It is imperative that you are in contact with the lender throughout the entire loan process. Because the process is so complicated, there can be questions and issues that arise quite often. The quicker you supply the lender with the answers and proof that they need, the quicker you can get the loan approval that you need.

In general, you can expect to close on an agricultural loan in 2 to 4 weeks, depending on all of the circumstances. As you shop around for a lender, make sure you ask about their turnaround time so that you know exactly what to expect.

Click Here to Get Matched With a Lender.