Bridge loans.. How do they work?
So you have sold your home and purchased a new dream home, but your closing dates aren’t lining up perfectly, so what do you do? You’ll need bridge financing!
Bridge loans are temporary loans that create the funds to provide the downpayment for the new house you purchased. This type of loan is secured against your existing mortgaged home, and helps “bridge” the gap between your purchase and sale.
Primary Benefits of a Bridge Loan?
There are many reasons a bridge loan is beneficial to home owners, but here are a few primary reasons!
- · As a buyer, you can submit an offer to purchase without any additional conditions.
- · As a seller, you can immediately place your existing home on the market without restrictions.
- · Bridge loans may not require regular payments for a few months.
- · Bridge loans have more lenient approval process than other means of financing.
Want to know more about bridge loans, or need to discuss any mortgage needs, feel free to contact me any time.