Are you a ready, willing, and able buyer? The experts that led our workshop on land purchasing preparedness for beginning farmers, held at Convention last month, said you need to be just that before buying land for the first time! Missed it? That’s ok; we have you covered.
Here’s how to be a ready, willing, and able buyer...
1. Start early
Figure out what you can afford, and be realistic. Overstate expenses, and understate income. What can you afford? How much savings or additional equity do you have for a down-payment? What is the most you can do for a loan-to-value ratio on a new purchase? What additional collateral could you pledge? Will a family member be co-signing or guaranteeing a certain portion of the loan? These are all questions you will have to answer before taking out a loan.
2. Build relationships
- Form a relationship with a lender, prior to asking them for money. Share your vision. Lenders are far more likely to lend to someone they have met and trust. Some banks may not be able to offer you the deal others can, so introduce yourself to multiple lenders.
- Find a mentor. Navigating the unknown territory of purchasing land for the first time and beginning your farm or ranch can be overwhelming. Let someone lead you in the right direction.
3. Educate yourself
There are many programs that are designed specifically for young farmers and ranchers, but they won’t find you. Do a little research, and make sure you have explored all of your options and opportunities.
- Northwest Farm Credit
- MT Department of Agriculture