Top 10 Documents Needed to Apply for a Land Loan

Know what documents you should have ready when you apply for a land loan.

The process of applying for a land loan has the unfortunate reputation of being a procedure that will test your patience and sanity, but it doesn’t have to be that way. As land loan experts, we make every effort to simplify the process, but there are some steps you can take, too, when you apply for a land loan to help the process run more smoothly. One option is to have all the paperwork land loan lenders will want ready when you apply for a loan. Review the top 10 documents you’ll need when applying for a land loan.

Top 10 Documents Needed When You Apply for a Land Loan

1. Collateral information. You’ll need documents that describe the land itself. This can include parcel ID numbers, maps of the property, any appraisals that have been done, etc.
2. Credit Score. Lenders will need to look at your credit score when you apply for a land loan. You’ll need to give them signed authorization to pull your credit report and scores. This information usually includes identifying information like addresses for the last five years, social security numbers and any name changes that have occurred for anyone involved in the loan.
3. Loan Application. Whether you apply for a land loan online or in an office, the loan application will include information that describes the dollar amount sought and the intended use of the funds.
4. Tax Returns. Lenders will want to see your past three years’ worth of tax returns, both personal and business-related.
5. Balance Sheets. Lenders will also want to see your balance sheet listing assets and liabilities for the past three years when you apply for a land loan. Again, lenders will want to see both personal and business balance sheets.
6. Off Farm Income. If you, your spouse, or anyone else involved in the loan, earns income off the farm, lenders will want to see proof of that income, such as pay stubs, W2’s, and/or 1099 forms.
7. Business Plan Strategy. This document shows lenders you have a sound plan for the future of your agribusiness and the land you want to buy or refinance.
8. Projections. Documents that showcase the future of your agribusiness, such as crop plans and projected yields, give your lender insight into the profitability of your operation and the amount of risk involved in the loan.
9. Verifications of Debts and Assets. Documents that confirm the debts and assets of your agribusiness give your lender a better picture of the borrower’s and business’s fiscal health.
10. ID and Biography. Your lender will need to verify your identity with a form of valid identification, but telling us your story can be just as important. We want to know what makes agriculture part of your life and what your farm or ranch means to you and your family.

Ready to apply for a land loan? Contact us to speak with one of our expert land loan team members about agricultural land financing today!