Each situation is different. However, as a starting point, you can expect a closing to occur not within a day after you and the seller sign the contract. Overall, the process goes something like this:
1.Determine the type of property you are looking for and general location.
2.Review properties available on the internet, local newspaper, or visiting with area realtors.
3. Make an offer on the property and negotiate with the seller until an agreed-to price is reached. You may wish to speak with your attorney before signing a real estate purchase contract. After signing the contract, you will place earnest money on the farm to hold it until you can close.
4.Take your contract along with financial information to a local rural lender. This may include past tax returns, current pay stubs and a list of all assets and liabilities. They will work with you to make sure the property is within your financial capabilities. Meeting with a credible lender prior to even looking for a property can save you a lot of time and effort by narrowing down the price range you can pursue.
5. Upon loan approval, the lender will work with you to get the property appraised and alert you of any title issues prior to loan closing. Have an attorney review any information you do not understand or if you just want additional peace of mind.
6.Prior to the closing, you will receive a copy of the closing statement that will let you know the amount of money you will need the day of closing. Normally these funds have to be certified which means a cashier’s check.
7. If you are borrowing part of the purchase price, you will close your loan with the lender prior to the real estate closing. Then you will meet at the title company office to close the transfer. They will file the necessary deeds and forward them to you after the recording is complete.
