Now is a great time to consider moving to your dream home. If you have had your eye on your next home, whether it is something a bit larger to accommodate your growing family, closer to work, or the home of your dreams, now is the time to make the move. If you’re worried about the home not being available by the time your current home is sold, don’t worry because a bridge loan may be the perfect solution.
A bridge loan is essentially a short-term loan taken out against the current property to finance the purchase of a new property. Bridge loans are usually good for a six-month period but in some cases can be extended up to 12 months. The name “bridge loan” comes from the use of the loan when the buyer is looking to upgrade to a larger home but has not yet sold the current home, so the loan “bridges” the gap between the time of purchase and selling. The most common use of a bridge loan is that it can be used to make payments towards the mortgage of the new property and once the previous property sells, the proceeds would be used to pay off all existing liens and the excess used towards the down payment of the new home.
So if you’ve been struggling to sell your home, maybe a bridge loan is the right option for you so you can lock up your dream home before it goes! Talk to the professionals at NOVA about Phoenix home loans and bridge loans today! Visit them online at www.novahomeloans.com.