Closing on the same day for 2 properties can be hectic. I know, because I did it.
What I always recommend is Bridge Financing if it’s a possibility for you when buying and selling a property!
A bridge loan is a short-term financing solution that allows homeowners to access the equity in their current property to secure a down payment on a new home before their existing home's sale has closed.
It "bridges" the financial gap, helping you move forward with a purchase without waiting for your downpayment funds to be freed up.
Bridge loans are ideal for: -If you have a firm sale on your current home but a closing date that comes after the purchase of the new property. -Homeowners planning to buy a new home before their current property closes and need temporary funds to cover the gap. -When managing unexpected closing delays & require short-term financing to avoid disrupting the move.
Planning ahead ensures you’re prepared for:
-Interest rates: (higher than traditional mortgages) -Fees: May include administration fees, appraisal costs, or legal fees, depending on the lender. -Loan term: Typically 90 days or less, with repayment due once the current home sale closes. -Additional documentation: Some lenders will require additional documentation for a bridge loan transaction such as proof of insurance on the property holding the bridge.
If you are considering a bridge loan, proactive planning is key to avoiding surprises. Chatting with your mortgage professional will help make your next move as smooth as possible
Closing on the same day for 2 properties can be hectic. I know, because I did it.
What I always recommend is Bridge Financing if it’s a possibility for you when buying and selling a property!
A bridge loan is a short-term financing solution that allows homeowners to access the equity in their current property to secure a down payment on a new home before their existing home's sale has closed.
It "bridges" the financial gap, helping you move forward with a purchase without waiting for your downpayment funds to be freed up.
Bridge loans are ideal for:
-If you have a firm sale on your current home but a closing date that comes after the purchase of the new property.
-Homeowners planning to buy a new home before their current property closes and need temporary funds to cover the gap.
-When managing unexpected closing delays & require short-term financing to avoid disrupting the move.
Planning ahead ensures you’re prepared for:
-Interest rates: (higher than traditional mortgages)
-Fees: May include administration fees, appraisal costs, or legal fees, depending on the lender.
-Loan term: Typically 90 days or less, with repayment due once the current home sale closes.
-Additional documentation: Some lenders will require additional documentation for a bridge loan transaction such as proof of insurance on the property holding the bridge.
If you are considering a bridge loan, proactive planning is key to avoiding surprises. Chatting with your mortgage professional will help make your next move as smooth as possible