Sometimes in the real estate business, we’ll encounter an individual who wants to purchase a home before selling their existing home. While that’s not always an ideal situation, a bridge loan may be the answer to the financing question.
So what is a bridge loan? A recent article posted on thebalance.com went into great detail on this subject. Today we’ll share with you some highlights from the article.
- The main advantage of a bridge loan is to avoid having to make a contingent offer on the new home.
- The bridge loan is a temporary loan that bridges the gap between the sale price of a new home and a home buyer’s new mortgage in the event the buyer’s home has not sold.
- The bridge loan is secured to the buyer’s existing home, with funds from the bridge loan used as a down payment for the move-up home.
- Rates for bridge loans will vary among lenders, so do your homework.
- Before taking any action, please speak to a trusted financial advisor and experienced Realtor who can provide some much-needed professional advice.
Want to learn more about bridge loans and other financial options for selling your house while you buy a new home? Join us for a seminar with M&T Bank on Saturday, May 20 at 10:30 a.m. The seminar will be held the M&T Bank Mortgage Office, 80 Holtz Drive in Cheektowaga. Download our bridge loans and other financial options seminar flyer.