Move into Your Dream House Before You Sell Your Old House with a Bridge Loan

A bridge loan can be just the thing to get you into your dream home even if you haven’t sold your current home yet. Find out more about this type of loan — and how to get one.

While the idea of moving into a bigger/better/newer home is exiting and enticing, the process of simultaneously trying to sell your home and find the perfect new one without letting it get away because you haven’t sold your current home yet. Not to mention maintaining the home for showings, finding the exact location, and packing. Some homeowners even feel the pressure to accept a lower offer on their current home than they really want because they feel the pressure to sell before moving. But you can relieve some of that stress with the help of a bridge loan.

You can take your time, get the most of out of your home sale and even move into your new dream home without the stress of money with this type of loan, which serves as a way to provide funding during the gap between when you purchase your new home and when you sell your old home. This short-term loan allows you to make a down payment on your new home and is actually based on the equity you have accrued in your current home, much like a home equity loan. But in contrast to a home equity loan, you can take out this type of loan on your home that is currently listed on the market.

Bridge loans are beneficial because they are not too difficult to obtain, there is not a lot of requirements when it comes to the documentation involved in the application process. Another benefit is that sometimes payment is not due for several months and in that time if you sell your home you can pay back the loan, save on any interest rates that may have accrued and not suffer any prepayment penalties.

A bridge loan is very beneficial for homeowners, but it does have its drawbacks, too.

Borrowers should be aware that due to the short-term nature of this loan, the interest rates are much higher than traditional home equity loan or mortgage. However, as mentioned above, you can avoid paying those high interest rates if you are able to negotiate a “grace period” before payments are due. Working with a lender is a good way to negotiate that grace period. These loans are not offered through traditional lenders, so you must go through a private lender. It’s important to seek a reputable one and make sure they are licensed.

Finally, keep in mind that while a bridge mortgage is a great way to finance your down payment, you still will need to get a mortgage on the property. Since you will own both properties for at least a short time, you will need to be able to qualify for two mortgages.

There’s no time like the present to obtain your loan and get moved into your dream home!

Once you’ve weighed the pros and cons, it’s time to meet with a reputable mortgage broker to get your loan approved today! There’s no need to wait once you’ve found your dream home so get started with your bridge loan now!

Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.