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Tips for Finding a Rural Mortgage Lender that Works for You

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Jessica Held
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Home > Education & Events > September 2018 > Tips for Finding a Rural Mortgage Lender that Works for You
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If you’re ready to get serious about purchasing a home in a small town or in the country, here are some things you need to think about when it comes to choosing the right rural mortgage lender.  
 
1. Choose an experienced lending officer.
Ask friends and family members for recommendations for an honest and trustworthy lender to guide you through your rural home buying process. You are not just a number and you shouldn’t be treated as such. Relationships matter and working with someone who takes the time to help you navigate the roadblocks and detours that can come with purchasing a home in the country.
 
2. Find a lender who specializes in financing rural properties.
Be sure to communicate with your lender up front regarding the type of property you are interested in. Not all lenders finance rural properties. There’s nothing worse than getting preapproval from a lender and having your offer accepted on your dream property only to find out the lender cannot provide a mortgage on the property. Here are some characteristics that prevent a property from qualifying for a garden variety home mortgage:
  • The property has tillable acreage or a few ag buildings.
  • The property has the potential to house livestock or incoming generating capabilities.
  •  It is a unique structure, such as a shed-home or home manufactured.
3. Can you obtain a long-term, fixed interest rate loan?
It’s very important to ask questions up front to find a lender who can offer you a loan product and rate that will best fit your situation. Some lenders may indicate they are able to assist with financing a country home, but are unable to offer a fully amortized fixed rate loan. This is an important question to ask when shopping around for a lender. It may in your best financial interest to avoid a balloon loan with an adjustable rate.  Those loans may require refinancing, adding unnecessary closing costs each time you refinance, and can be costly if interest rates rise.
 
Buying a rural home is a major life decision and you deserve to have an expert partner to guide you through the process. Choosing the right lender can make a big difference in how smoothly your home buying journey goes and how you position yourself to meet your family’s financial goals. Work with someone you trust and feel comfortable with. Someone who is available, local, and ready to answer any questions you have along the way.

Ready to get started on the journey to owning a country home? Make sure you download our FREE e-book to learn the 8 Blunders Rural Home Buyers Make and how to avoid them. 
 
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