For the people who have jobs, they find it easy to get another one. The same manner is what makes it easy to find a job when you have one. You can do this if you have a bridge loan. What you should know about this loan is that you will have to leave the one you have so that you can get a new one. You will need to sell the home so that the money you get can be used to fund your new home. The use of bridge loans require that the owner uses up to 80% of the value of the existing home for sale as a down payment for the new home. Therefore, it is necessary for you to find out what you stand to gain when you get a bridge loan.
Bridge loan is a short term loan that acts as a bridge of the credit of the existing home you are selling as well as the new home you are planning to buy. It will be used as a down payment on a new house by borrowing off equity on the existing house. What you should know about this loan is that it will allow you to use the net financing from the current home sale before it is realized as down payment.
The bridge loan will save you time. Some of the pointers you should note is that it will save you time because it is designed to generate funding for the purchase of your new home. The settlement will not be obtained until when the existing home has been sold. You should note that with this option then you will have to move in the new house for several days rather than last minute when the old house closes.
Ability to choose the repayment option. Most of the mortgages will force the borrowers into a long term option. However, this is not the case with the bridge loan. What you should note is that with this type of loan then one has the option of paying it either before or after the permanent financing is secure. Choosing to pay it before means that the person doing the payment will repay it in full structure payments over a fixed period of time. When you do the payment on time, then you should note that the credit rating will improve. If this is the case, then you should note you will be able to get a loan that in most cases you might not qualify to get. When a borrower chooses to repay loan after the financing is secure, a portion will be used to repay the bridge loan.