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Moving With (And Without) a Bridge Loan

Making the move with a bridge loan

If you’re ready to move on from your old home, but it still hasn’t sold, you may want to consider applying for a bridge loan.

Essentially, the loan helps you move on to a new property, by providing an immediate, short-term loan.

In this situation, you’re able to make the move without waiting for your original home to sell or writing a contingency into the offer on the new home that you have to sell your current property in order to proceed.

Essentially, a bridge loan could make your home offer more attractive to a seller.

With a bridge loan you’re able to

  • Move to a new home before selling your current home
  • Save money on storage & temporary living expenses

Because you’re able to move into the new property without waiting for your existing property to sell, you may not have to worry about the cost of moving expenses tied solely to temporary housing.

This could also mean not having to pay for storage costs if you’re able to move directly into your new home from your current one over a shorter amount of time.

This could also mean not having to pay for storage costs if you’re able to move directly into your new home from your current one over a shorter amount of time.

Typically, once you secure a bridge loan you no longer have to worry about the cost of moving expenses plus affording two monthly housing payments at the same time.

Theoretically, you now have time to sell your existing home and pay off the loan without also worrying about making monthly payments.

Of course, your existing home DOES need to sell within a reasonable time frame for a loan like this to be beneficial to the homeowner.

A bridge loan may also benefit the seller, especially when they want to

  • Close fast
  • Have multiple offers

A bridge loan works because, unlike some other loans out there, you’re able to get this type of loan while your current home is up for sale. That’s not always possible with other loans.

Is a bridge loan the right loan for my situation?

That is entirely up to you. First, you need to decide whether you’re

  • Ready to move
  • Have a new home to move into
  • And, if the benefits outweigh potential risks

Because you still have to sell your existing home, you don’t want to get stuck with two homes when the loan comes due.

That’s why it’s especially important to understand not only how a bridge loan works, but the costs associated with it.

If you’ve done all your research and don’t think a bridge loan is the way to go, there are some other options out there.

However, if you’ve already found the right home and you’re ready to make the move immediately without waiting for your current home to sell first, a bridge loan is certainly an option to consider.

About the author

I am from Chicago, IL and I have been lending in this area for 20+ years. My team and I strive to give you an enjoyable mortgage experience while providing you the best programs and rates! I am also offering a FREE mortgage analysis to determine if refinancing is right for you.

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