When To Turn to a Bridge Loan
Real estate is a high-dollar proposition. In many cases, you may be attracted to a piece of real estate but much or most of your capital is tied up in an existing property. It can be frustrating because you’d like to use the proceeds of the property you own to buy the new one. Fortunately, there is an elegant solution: a bridge loan.
Bridge Loans Explained
A bridge loan is a short-term financing option financing that provides immediate cash flow while awaiting the cash from an upcoming sale. Bridge loans are largely used in the commercial and personal real estate market. Individuals typically use them when it is important to secure funding for a coveted property while awaiting the proceeds from a sale of an existing home or other property. A job transfer from one city to another is an example of a situation when a bridge loan may be just the ticket.
As with any financing option, there is no single answer to whether a bridge loan is right for you. It depends on your finances, your living situation, the economy, and your personal credit history.
When To Utilize a Bridge Loan
One of the principal reasons to utilize a bridge loan is to place a contingency-free offer on a new home. In an active housing market, fewer or no contingencies can improve your odds that the seller will prefer your offer when they’ve received multiple offers.
Another reason to use abridge loan is if you are selling in a slow-moving market. If you need to relocate quickly, a bridge loan will conveniently finance your new home – “bridging” the time until your old home sells.
Seek Expert Assistance
Are you considering a bridge loan? Contact Skogen Capital Lending today as your loan provider. Their financial experts can help you navigate the full gamut of finance solutions, ensuring that you obtain the most appropriate one.