Why A Bridging Loan Is A Good Idea

The time has come to purchase a new home, but you’re waiting on your new mortgage. At such times, many consider a bridging loan. In many situations, people are confronted with the question of what to do with the existing mortgage on their current home. That need not slow the process; you can still continue forward with your plans with confidence.

It isn’t necessary that your old home is sold before you buy the new one. Find the right lender to secure your new mortgage to the one you have now. The money you request now is secured by the home you’re selling, and you will have a down payment available for the new purchase.

It is true that a lender might hesitate when he considers that you will have two payments. However, you can join the bridge with your existing commitment and add it to the new mortgage.

If it seems there could be more reasons that a financial institution would be hesitant, remember that your first mortgage is beneficial to you. It is understood that people often complete the purchase on the new home while the old one is still in their possession, and owning two houses is a strong position.

That ratio of your debt-to-income may be restricted to fifty percent because you have a jumbo amount on your mortgage. However, you will be in a strong position if you have secured your new residence, and can live there. While you’re setting up house in the new place, the old place is still on the market.

Bridging loans are offered at different rates, and there will be fees for origination, administration, appraisal, and Escrow. The positive side is that many of these loans waive payment for a few months, and that gives you time to reorganize your finances and settle in. What you need is ready now, and there is no reason to wait.

Finding specialized loans such as a bridging loan is easy to do when you search online. You can check out the website for Hampshite Trust Loans for good rates and terms.