What is Bridge/Interim Financing?

If I sell my existing home – how do I secure my next home? 

       What is Bridge or Interim Financing? … Sometimes all your money is tied up in the equity of your existing home but you need a down payment and closing costs to purchase your next home – What can you do?

Instead of trying to match your sale date of your existing home with the purchase of your next home  – make your life simple and arrange for Bridge Financing or Interim financing.

Too many things can go wrong if you are trying to match possession dates, funds may not be transferred on time or some silly unforeseen event may prevent the sale from closing as planned – so this is the best alternative …

Once the sale of your existing home becomes firm – which means all conditions have been removed and there is a SOLD sticker on your lawn sign .. take the Offer to Purchase to your bank or lending institution to prove that there is a contract in place.  They will use this information to lend you money to move to your next purchase.

It may cost you a small amount depending on the policies of the lending firm – i.e. a flat fee up to $500 may be charged as an application fee but the interest rate is current, or no application fee but the interest rate may be prime +2% or whatever is their policy.

It may be in your best interest to find this out first before you sell so that you are prepared for additional costs and arrangments.

For further answers to any of your questions, please contact me or respond to this blog – until next time … Enjoy your day and keep smiling!

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