If you’re relying on the sale of your existing home to finance the home you’re buying, don’t let the house of your dreams slip through your fingers over mismatched completion dates.
Quick, before the Summer selling frenzy starts, let’s go over how you can buy and secure the home of your dreams before the time your current home sells.
Confused?
Definition
Bridge Financing is a temporary financing option designed to help homeowners “Bridge” the gap between the time your existing home is sold and your new property is purchased.
Bridge Financing can last anywhere between 10 days to several months. This is how you can complete on the house you’re buying first and complete on the house you’re buying later.
Pro
- Use the equity of your current home as down payment for the next.
- Complete the buying of a new house before your own house sells.
- Secure more time in case your current house takes longer than expected to sell.
Cons
- The Interest might be higher than conventional financing.
- Terms will be different from conventional financing.
Conclusion
Consult your real estate agent and your mortgage broker to see if Bridge Financing is an option for you.
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