Many home buyers and sellers find themselves stuck in the complex paradox of how to smoothly handle the simultaneous purchase and sale of a home. For the vast majority of homeowners and buyers, the necessary capital and financial requirements cannot be met for purchasing a new home until an existing one is sold and closed. As a result, many homeowners find themselves in a complex predicament of trying to manufacture and arrange a perfectly timed and coordinated situation to facilitate a smooth transition. Unfortunately, such a perfect scenario rarely ever happens in a complicated real estate transaction. The solution, then, is a bridge loan which conveniently helps homeowners deal with the lag time between the purchase of one property and the sale of another. Bridge loans roll the mortgages of two houses together, giving the buyer far more flexibility and peace of mind as they wait on the sale of their old home. Among others, one key benefit this allows the homeowner is time and reduced pressure to sell their home for the maximum possible price instead of feeling rushed.
What we evaluate when processing bridge loan applications:
· Credit rating
· Debt to income ratio
· Borrowers’ home equity
· Capital or savings on hand