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.

Due to the above problems, it is very likely that a person will need to hire an attorney to assist them in fixing them. This fixing also takes a lot of time. It can take another two weeks making the time spent on the whole process since the acquisition of the commitment document four weeks

When getting an auto loan on the other hand, the borrower can simply sign the back of their title and later the lender will attach alien on the automobile and in less than a day one will be able to be granted. Many people however wonder why the loan cannot just undergo the normal real estate loan procedures.

When lending an auto credit the only document needed is normally the alien. However many more deeds are needed for the property credits like the leases, assignments, mortgages, powers of attorney, affidavits and many others. All these documents really complicate the procedure and extended it further.

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.

Read more about Reasons For The Complicated Farm Loans Processes.