By Madison, Ag Lending Group
The single biggest reason a land loan drags out longer than it needs to isn't a credit issue or a valuation problem — it's paperwork trickling in one document at a time over three weeks instead of arriving as a complete package up front. We'd rather tell you everything you need on day one than have you find out piece by piece.
Financial Documents
Plan on providing three years of tax returns, both personal and for any farm entity involved, along with a current balance sheet and a cash flow projection for the operation. If you've got a recent Schedule F, that helps too. We're looking for a consistent picture of how the operation performs, not just a single strong or weak year taken out of context.
Entity and Ownership Paperwork
If you're purchasing through an LLC, partnership, or corporation rather than personally, we'll need formation documents, an operating agreement or bylaws, and documentation of who has authority to sign on behalf of the entity. This trips people up more than almost anything else on the list — banks can't lend to an entity that can't prove who's authorized to borrow on its behalf, and pulling this together after the fact can add a week or more.
Property-Specific Documents
A current title commitment, the legal description, and a recent survey if one exists all speed things along. If there's an existing lease on the property — cash rent or otherwise — bring a copy of that too, since it affects both valuation and how quickly you'd have full use of the land.
Down Payment Verification
Be ready to show source of funds for your down payment, whether that's a bank statement showing the funds have seasoned for a couple of months, or documentation if the funds are coming from a sale of other assets. Lenders ask about this not to be nosy, but because verified, seasoned funds close faster than funds that just landed in an account.
The List That Actually Saves Time
We put together a simple checklist for exactly this — every document above laid out in one place, so you can gather everything before we're even deep into underwriting. Ask us for it before you make an offer on a tract, not after, and you'll likely find the whole process moves considerably faster than you expected.
Once your documents are ready, start a pre-approval.
About the author: Madison grew up in agriculture, turning irrigation lines in her family's orange and almond orchard in Central California. Today she helps farm and ranch families across the country find financing that fits their operation at Ag Lending Group, a family-run farm financing advisor based in Phoenix that has been working with producers since 2016. Get in touch.
