Bridge loans can be a fantastic help for those who want to buy a new home while still owning their current one. It can provide buyers with a strategic financial tool that can significantly boost their purchasing power and streamline their property acquisition process.
These loans act like a bridge between the time you sell your old home and buy a new one. They are a special tool that borrowers can use to make their home-buying journey smoother.
Flexibility and Competitiveness
Imagine you find your dream home, but you haven’t sold your old house yet. That’s where bridge loans come in. They provide you with the money you need to buy the new house while you wait for your old house to sell.
In a competitive market, where desirable properties can swiftly come onto the market and disappear just as quickly, having access to immediate funds through a bridge loan can be a game-changer. This way, you don’t have to miss out on the perfect home just because you’re still trying to sell your old one.
A Huge Stress Reliever
Moreover, bridge loans can alleviate the stress and logistical challenges that happen from the timing between selling one property and purchasing another.
Coordinating these two transactions can be a logistical nightmare, and the financial strain of managing two mortgages can be overwhelming.
Bridge loans eliminate this double burden by offering temporary financial relief, enabling buyers to focus on their new property without the pressure of an impending sale hanging over their heads.
Buying and Selling Power
Furthermore, bridge loans can give you more power when you’re buying and selling. Armed with the financial flexibility that a bridge loan provides, buyers can negotiate more confidently with sellers, often securing favorable prices or conditions.
At the same time, having the financial means to move quickly can also give buyers an advantage when selling their own property, as they can often afford to hold out for more favorable offers instead of rushing into a sale.
The Specifics
• Minimum Credit Score: 720
• Maximum Loan-to-Value: 80%
• Maximum Loan Size: $300,000
• Minimum Loan Size: $40,000
This bridge loan is a short-term (6 months) loan that is secured by the borrower(s) existing primary residence.
Purpose of the bridge loan proceeds are for borrower(s) purchasing a new primary residence using The Lending Coach as their lender.
Each borrower whose income or assets are used to qualify must meet the minimum credit score and tradeline requirements.
In Conclusion
A bridge loan is a great tool for buyers in the real estate market, enabling them to capitalize on opportunities, reduce stress, and negotiate with greater confidence.
They make the whole process less stressful and give more control over buying and selling.
So, if you ever find yourself in a situation where you want a new home but haven’t sold your old one, remember that bridge loans can be a great option to make things easier! Reach out to me for the specifics, as it would be my pleasure to help you.
