Home Equity
Interest Rates
Credit Repair
Refinancing
Reverse Mortgage
Mortgage Advice
Debt Modification
Home Equity Loan
Bad Loans
Mortgage Products
Mortgage Applications
Mortgage calculators
Adjustable Rate Mortgages
|
How Can I Buy a New Home Before I SellThe common ordeal, which most people face is, how can I buy a house before I sell the old one? But, the truth is that you can do that if you like some house, and want to purchase it and improve your standard of living. In order to buy a house before you sell, you would have to take a bridge loan. A bridge loan is a kind of short-term loan, which is taken out for a period of 2 weeks to 3 years for the duration of the arrangement of longer-term financing. This loan is used for real estate purchases to close a property quickly, reclaim the real estate from foreclosure, or to take an advantage of a short-term opportunity to secure for long-term financing.
In case you have not heard of a bridge loan recently, then it is most likely because the housing market has been on high for so long that nobody needed them. In the last five years, many homes were sold within few days of being listed for sale indicating that very few homeowners had to worry about paying for their new home before selling the old one. But, slowdown in the number of housing markets in the US now-a-days implies that more consumers need help to bridge the gap between buying and selling a home.
A short-term loan is used until a person or a company secures permanent financing or removes any existing obligations. A bridge loan is paid back when a house is sold or the borrower’s credit amount improves. This type of financing permits the consumer to meet with their current obligations by providing cash flow immediately. These loans are short-term with high interest rates, and are supported by some kind of security, like real estate or inventory. They are also known as interim financing, gap financing or swing loan.
The advantage of a bridge loan is that it allows you to make an offer on a house without a possibility clause, and the disadvantage of it is that it’s more expensive than the conventional financing, as it has high interest rates.
|
Watch The RateWindow™ Video