- DO NOT allow your bank to put in the application as a residential mortgage. It will be declined. You must do it through the Small Business Banking section of the bank, and structure it as an Agricultural Mortgage. It's a real headache when you have to do this twice.
- Leave time in your offer for an environmental assesment to be done - including time for water testing to come back from the lab.
- Leave time for an appraisal to be done. Typically two to three weeks, and NEVER do it over the March Break. Trust me on that one.
- When the bank tells you it will all be fine, don't believe them. Ask for it in writing.
We are still waiting to hear about financing on the farm. It amazes me that this is taking so long, I am so used to typical residential mortgage deals where the offer bounces back and forth - you sign off - and it's done. I had no idea that so many appraisals and assesments would be required for a farm. Thankfully, we allowed two weeks for the financing clause, but it has now taken us almost 3. We will see where we end up with it.
The seller is horrified that this is taking so long, and terribly concerned that we believe she is trying to sell us a farm for more than it's worth. This poor woman! She is in her late 80s, and this was her family home, I can't even begin to imagine how stressed she is feeling right now. In the words of her agent, he is amazed we are being so patient to see this through to the end.
Funny, he has no idea how patient we can be. Two years of looking for a farm we aren't likely to let this one disappear at this stage in the game!