Here’s what you need to know about bridge loans and how to use them.
Today, I want to shed some light on a valuable option that many sellers may not be aware of: bridge loans. If you’re considering selling your house, especially in the current market, this option could be incredibly useful.
A bridge loan allows you to access funds from a bank based on the equity in your current home, enabling you to purchase your next home before selling your current one. Not every mortgage lender offers bridge loans, but most do. This option is particularly attractive for sellers who want to buy a new home without the pressure of selling their current one first. With over 50% of homeowners in America having substantial equity in their homes, many are eligible for bridge loans.
“Even if you don’t use your bridge loan, it can strengthen your position as a buyer.”
Before you get a bridge loan, make sure you speak with your lender and real estate agent. You’ll need to ensure you have sufficient equity in your home to qualify for the loan. Here’s how it works: You apply for the loan, find your next home, and make an offer without the contingency of selling your current home first.
If you apply for a bridge loan, you might not even have to use it, but having it available can strengthen your position as a buyer. It allows you to make non-contingent offers on your future home, making your offer more appealing to sellers.
Navigating the complexities of bridge loans and real estate transactions can be daunting. That’s where we come in. Just call or email us if you have any questions about this topic or anything else related to real estate. We look forward to hearing from you!