Need a Bridge Loan ?

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     You're thinking of buying a house so you go out with a real estate agent and find the perfect "move-up" home.  So you present an offer.  The only problem is that you need to sell your house in order to buy that house.

But you haven't even listed your house on the market yet.

    So you make a "conditional" offer.  Your offer to buy is conditional upon your ability to sell your house in time to close. 

You haven't even listed your house yet.  That's a little bit "too" conditional for most sellers nowadays.  They are likely to turn you down.

 

    In hindsight, you realize you should have listed your house first, got an offer (and accepted it), then gone out looking for a new home.

But it's too late and you really want that home.

     The real estate agent suggests you get a "bridge loan."  If you have enough equity in your present home, this is a special loan that allows you to get some cash so you can make a down payment and buy the new home.  Interest rates are high, points are high, and there are costs and fees involved.

Remember, get the loan before you list your property for sale.

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