Chris Gmyr

If you are trying to sell your home and buying a new one, you know it may be difficult to come up with all the money to cover mortgage payments and other expensive as well as the expensive for your new home. You may have considered an equity loan, but bridge loans may offer you even more benefits as a seller. These loans help to “bridge” the space between the sale price of your new home and your new mortgage payment if your house has not sold yet. The funds from this loan can also be used as a down payment on your new home. Here are some tips to consider on investing in a bridge loan.

Talk with your real estate agent
Real estate agents know how hard it can be to both buy and sell a home. They know about different loan options and financing and will be able to offer advice about what is best for you and your family.

Having a first mortgage may qualify you for some benefits
Some lenders will allow borrows to buy the new home and combine together the payments. Other benefits may include: higher debt to income ratio if the new mortgage is a conforming loan. Ask your agent to go with you or explain things that may not be clear.

Fees are generally low for bridge loans
The average administration fee might be: $750, appraisal fee: $350, and title fee: $350 varying from state to state.

Bridge loans may not require payments for a few months
This is just one of the benefits of these loans, others might include: putting a home on the market without restrictions, removing contingency to sell, using the loan as down payment on a new home and more.

These tips and benefits may make bridge loans more attractive to both buyers and sellers compared to other financing and mortgage options. With these tips, you can talk to your agent and get started with the process easier and smoother. Then, you and your family can focus on selling your home and looking forward to a bright new future in a brand new home.