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BND Loan Closing Steps

  1. Upon approval, a commitment letter will be sent to borrower to complete and return to BND.
    • Complete annual payment month and choose closing attorney, sign and date letter.
    • Return completed W-9.
    • Established Farmer Loan recipients: Choose an interest rate.
  2. Appraisal process initiated.
    • BND will select a certified appraiser and make contact regarding availability/cost.
    • If a current appraisal has been completed by another financial institution in North Dakota or FSA, it must designate the Intended User as BND.
    • If a valuation is needed on the property, BND’s Collateral Valuation team will order an appraisal or internal evaluation.
    • BND will notify borrower and the selected closing attorney to proceed with the closing when an acceptable appraisal is received.
  3. Close the loan.
    • Buyer/Seller will arrange for abstracts to be updated and delivered to the selected closing attorney.
    • Selected closing attorney will establish that BND will obtain a first mortgage on property securing your loan.
    • Selected closing attorney will coordinate a closing date with the borrower and BND.
    • BND will forward the loan documentation to closing attorney prior to closing date.
    • On the closing date, BND will forward the loan proceeds to closing attorney to disburse accordingly to borrower.