Before you go tracking down your dream equestrian estate or horse ranch, you should consider getting pre-approved. Being pre-approved can save you both time and money. Plus, there will be less hassle when you actually find a property that you want to purchase.
Starting the Process
To initiate the process, you need to speak with a lender. You need to verify that your lender can provide financing for a property that has acreage, particularly a farm.
When you speak to a lender, be prepared to show them all your financial information. The lender will inquire about your income, debt, credit history, etc. They will also need proof of income and your federal taxes over the last couple years. After receiving that information, they will be able to calculate your maximum budget.
Benefit of Getting Pre-Approved
Another benefit to getting pre-approved is that you can be realistic about the property you can afford. By learning the maximum amount that you can be lent, you can filter your search. It can be heartbreaking for buyers to find their dream property, only to learn that they cannot afford it.
Drafting Your Budget
After getting approved, you can also factor in your other monthly expenses that occur from operating a horse farm. Besides paying for the regular farm expenses, you will now have to pay a mortgage. It would also be wise to consider the renovation costs that are associated with buying a new farm. Often times, you will have to make adjustments to the farm so that you can operate at your standard. Whether it means adding new arena footing or painting the fences, evaluating all your costs is crucial to successful budgeting.
Getting the Upper Hand
By being pre-approved, you are indicating to a seller that you are serious about purchasing a property. If multiple offers are submitted, you can proceed quickly if you receive the winning bid. Sometimes, sellers are not willing to wait for buyers to get approved if they have other offers that they could instantly proceed with.
Conclusion
The benefits to getting pre-approved allow you to set realistic expectations and jump on any opportunities that arise. You will be ahead of other buyers and hopefully in the house of your dreams before you know it.
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