No doubt, these days real estate markets are really competitive. Planning to buy a new house after selling your own? Guess you require a down payment from the selling of your current property. Isn’t that so? Well, it can be all frustrating, especially for those who have a limited amount of time before the closing of their present house.
What Makes Bridge Loan a Popular Option for Homeowners?
Wondering why every homeowner runs after a bridging loan advisor? It is because bridge loans are a popular option, and here are two major reasons why :
- Compared to standard loans, the application and underwriting process for bridge loans are typically quicker.
- Also, if you have the necessary equity in your primary residence, you can probably qualify for a bridge loan if you can qualify for mortgages in Essex to buy a new property.
When Can You Use a Bridge Loan?
Wondering when a bridge loan can be used? Ask any bridging loan advisor, and they’ll ensure that the best time is when a homeowner wants to purchase a new property before selling their current home. Besides, to help you understand better, here are some situations when you can use a bridge loan:
- When you’ve chosen a new home and are in a seller’s market where houses sell quickly.
- When you want to buy a property, the seller won’t accept an offer if your present residence is sold first.
- When you’re unable to sell your current home in order to afford a down payment on the new one.
- When you want to close on a new house before you sell the current one you have.
- When you’re not set to close on the purchase of the new house before the sale of your existing home.
