WHAT TO EXPECT WITH THE LOAN PROCESS — BEFORE, DURING, AFTER

Applying for a loan can be daunting, and if it is your frst time, it may feel a little overwhelming. Here’s what to expect before, during and after the loan process, what steps to take, and why

Cape Fear Farm Credit is a good option for you.

WHAT TO EXPECT WITH THE LOAN PROCESS

BEFORE Before applying for a loan with Cape Fear Farm Credit, it is important to understand what type of loans we offer, who is eligible, what paperwork you need to have, and how to get started.

Who is eligible for a Cape Fear Farm Credit loan? Cape Fear Farm Credit offers agricultural and rural related loans. Any farmers, agri-businesses, or anyone seeking a loan for agricultural purposes are eligible for a loan with us. Rural residents looking to purchase a home or land are also eligible.

What types of loans are available? • Operating Loans • Farm and Ag Property Loans • Equipment Loans • Home or Real Estate Loans • Livestock Facility Loans for Poultry and Swine • Young, Beginning, and Small Farmer Loans • Farm Improvement Loans

Is Cape Fear Farm Credit right for me? Our mission to be the lender of choice to all of agriculture and our rural communities is at the heart of what we do each and every day. We are committed to agriculture and understand the ins and outs of the business. We get it.

What are the benefts to getting a loan with Cape Fear Farm Credit? We are a customer-owned cooperative. When you borrow from us, you are a member of the cooperative and are paid dividends, what we call our patronage program. A patronage refund is a way of distributing the Association’s net income to its customer-owners. Basically, it lowers your effective interest rate with us and saves you money.

What should I come prepared with before applying for a loan? Overall, no matter what loan you are applying for, you will need to fll out a balance sheet and have your last year’s tax returns. If you are buying a piece of land, be able to identify the piece of land on a map or get a pin number so we can look it up. If you are purchasing equipment, you’ll need the make, model, and serial number of the equipment. It may also be prudent to have in mind who you want to use as an attorney. In some loans (e.g. real estate), you will also need to know who your insurance agents are.

Are certain times better than others to apply for a loan? We are here to serve you so stop by any of our branches Monday through Friday between 8:00am and 5:00pm to speak with one of our loan offcers about your unique needs. No time is better than now to get the conversation started.

What will you be looking at when I inquire about a loan? We look at credit scores, overall fnancial condition, equity and repayment capacities.

capefearfc.com | 800-368-5819 | cfeinfo@capefearfc.com | NMLS # 671714

WHAT TO EXPECT WITH THE LOAN PROCESS

DURING Now that you are prepared and ready to make the leap into a loan, it is time to act. Knowing the next steps to take during the loan application process can be helpful.

What steps do I take to get started? Your frst step is to connect with us. Visit us online at capefearfc.com, call your local branch or just stop by. Or you can submit an inquiry on our website and a representative will contact you.

Where do I apply? Once you have made an inquiry and spoken to a loan offcer, you can submit an application to that loan offcer. At this time, an applicant can not apply online. You cannot apply online.

Is there a minimum down-payment requirement? Down-payment requirements are completely dependent on the type and terms of the loan. Long-term land loans may require more money down than short-term operation or equipment loans.

What kind of timeline am I looking at? While there are many things that can make each timeline vary, overall, land loans take 30-45 days between turning in the application to signing the papers with the attorney. It could move faster, but that is an average. On Cape Fear Farm Credit’s side, it is pretty quick. Sometimes appraisals, surveys, and attorneys can slow the process down. Equipment loans can be turned around inside of a few days. Operating loan request, depending on the customer and request, can be a few days as well. I encourage you to discuss the timeline with your loan offcer when discussing your specifc loan.

When and how do I decide if fxed or variable rates are best for me? We offer both depending on the fnancing you need. We also offer balloon rates. Certain types of loans are better served to have variable rates. Long-term rates are typically better served with fxed rates. It is completely based off your needs and wants but your loan offcer will work with you to get the best ft for you during the application process.

Is there anything else I should be doing during the loan application process? Your loan offcer will be communicating with you throughout the loan process if they need additional information. Otherwise, just sit back and relax until loan closing.

What happens once I’ve been approved for a loan? After you’ve been approved, we’ll fnalize everything to make sure all is in place. Your loan offcer will touch base with your insurance provider, and if it is a land loan will be waiting on an appraisal and attorney work. There isn’t a lot to be done on the customer end. Our biggest suggestion is to stay in communication with all parties involved.

AFTER How do I pay? What are my payment options? We have an app where you can make your payments. Just search Cape Fear Farm Credit and download it from the app store, Android or Apple. We can also do auto-drafts. Lastly, you can also pay in the branch offce or by mailing in your check(s).

What happens once my loan has been closed? Now you’re a customer-owner of Cape Fear Farm Credit. As your trusted fnancial partner, we are here to help guide you through your fnancial business decisions. I encourage you to strengthen that relationship with your loan offcer, bounce ideas off of them and let them visit your operation. In addition, you will receive patronage checks and latest news for Cape Fear Members including magazine newsletters, email news and invitations customer appreciation events.

Contributing Author: Stuart Betts, Cape Fear Farm Credit Harnett County Branch Manager

No matter what, Cape Fear Farm Credit will be with you every step of the way. Give us a call and we will walk with you before, during, and after the loan process as we have been doing for generations.

capefearfc.com | 800-368-5819 | cfeinfo@capefearfc.com | NMLS # 671714