I have talked about bridge loans previously, but here are a few key ways that a bridge loan can help you:
- No double headaches – when you simultaneously have to sell and buy a home, it’s a pain packing up your items, getting ready for your closing on the sale of your home, and dealing with the new home loan, etc. It sounds like it’s all going to be easy and all happen together, but something always goes wrong, usually on both loans/sales, and that causes delays. Think of it this way, you have 2 sets of agents and loan officers and sometimes title companies, which makes it far more complicated. The bridge loan solves all of this.
- When you are under the gun, you tend to take what’s offered, and the lowball offers keep coming in. You don’t have to take a lowball offer if you don’t have to sell. So potentially you will make more on the sale of your current home when you don’t have to sell in a specified timeframe, you can wait for the right buyer at the right price to come along.
- Enable non-contingent offers on your next home purchase. Without having to sell your home, you take that contingency right out of the purchase contract, which makes it more appealing to the seller to accept it.
- You still get the down payment funds from the equity in your home if you need it.
- If debt to income is an issue carrying two mortgages, this is your fast ticket to qualifying, there are interest only and even no payment required options on the bridge loan!
What’s holding you back? I have a bridge loan to sell you. Let’s start here…