In the real estate business, individuals sometimes face the challenge of wanting to buy a new home before selling their existing one. While not always an ideal situation, a potential solution to this financing dilemma is a bridge loan. Here are some key points about bridge loans, as highlighted in a recent article on thebalance.com:
- Avoid Contingent Offers:
- A bridge loan is designed to help buyers avoid making contingent offers on a new home.
- It serves as a temporary loan that bridges the financial gap between the sale price of the new home and the buyer’s new mortgage, particularly if the current home hasn’t been sold yet.
- Secured to Existing Home:
- The bridge loan is secured to the buyer’s existing home, utilizing the funds from this loan as a down payment for the new home.
- Interest Rates Vary:
- Interest rates for bridge loans can vary among lenders, so thorough research is essential.
It’s crucial to consult with a trusted financial advisor and an experienced Realtor before proceeding with a bridge loan. Professional advice can help individuals make informed decisions based on their specific circumstances.
To delve deeper into bridge loans and other financial options when selling and buying a new home, a seminar with M&T Bank is recommended. The seminar, scheduled for Saturday, May 20 at 10:30 a.m., will take place at the M&T Bank Mortgage Office, 80 Holtz Drive in Cheektowaga. Interested individuals can find more details on the seminar by downloading the provided flyer on bridge loans and other financial options.