Did you apply a farm mortgage that is near renewal? There is no time for taking a chance when your farm ownership and agricultural cash flow is at stake. To take care of everything, mortgage renewal planning is important.
Understanding your current situation and taking a look at your financial statement is the first step in your journey for mortgage renewal in Abbotsford. Early documentation can pave the way for a smooth future and prevent hassles later. Another crucial step is to update your farm mortgage and productivity plan.
Remember to look into the several loan renewal choices that are available to find out their advantages and disadvantages based on your current financial situation.
Negotiation with lenders is strongly impacted by your assessment of how the market conditions affect you. After that, find out your future cash flow requirements. Come up with a well thought plan with your desired estimates before scheduling a mortgage consultation with a mortgage broker in Abbotsford and Surrey.
Examine & Understand Your Financial Records
Examine your financial statements thoroughly before you start with the mortgage renewal process. This is a crucial step for farmers who are serious about expanding their business. Farm loans can help you reach your farm ownership goals without going over your budget, and without having to pay upfront, no matter you want to expand your property or buying new one.
Your cash flow records, balance sheet, and income statement are the important documents you must have. These documents show the financial health of your farm, including the highs and lows of the previous year.
Lenders review this information in order to determine the most effective renewal terms and to assess risk. Having a good understanding of these documents makes the process of negotiating with lenders much easier.
You might discover some unexpected ways to improve your financial health by reviewing these statements, which is similar to receiving a second opinion on your financial situation. Both have a direct effect on how good the renewal terms you can achieve.
Seek the assistance of a financial expert who is knowledgeable about your unique situation and challenges of agricultural operations to ensure accurate financial statements. When negotiating loan terms, having experts’ opinions can greatly help you because their insights can close any gaps in your knowledge and increase your negotiating leverage.
Make A Budget For Your Upcoming Cash Flow Requirements
Because farm income often fluctuates depending on climate and favorable weather conditions, farmers must plan for their future cash flow demands way before applying a renewal. Depending on the crop cycle, farmers may only receive payments once or twice a year, in contrast to normal salaried workers. The division of fiscal years and this seasonal earning pattern make it essential to prepare thorough financial records. Make sure you do the following for meeting future cash flow requirements:
- Accurate Mortgage Evaluation: Comprehensive financial documentation enables lenders to precisely evaluate your capacity to repay the mortgage you applied for. Tax records for previous years might not provide the whole picture because profits and expenses occur at different times.
- Advantages of Records Based on Accrual: Maintaining comprehensive accrual-based documentation makes mortgage renewal applications easier. From an agricultural perspective, these records offer more precise insights into the profitability of your farm mortgage.
So, these were some aspects you need to consider when applying a farm mortgage renewal application. If you are looking for a reliable mortgage renewal expert in Abbotsford, rely on none other than Sandhu & Sran Mortgages. For past many years, we are helping farm owners in getting competitive mortgage renewal deals. Contact us to get started with your renewal application.