It is easy to get a job when you already have one. The same manner is what makes it easy to find a job when you have one. You can do this if you get a bridge loan. What you should know about this loan is that you will have to leave the one you have so that you can get a new one. You will need to sell the house and use the cash to finance the new home you are planning to get. The use of bridge loans require that the owner uses up to 80% of the value of the existing home for sale as a down payment for the new home. Thus, this is the reason you should think of getting a bridge loan.
Bridge loan is a short term loan that acts as a bridge of the credit of the existing home you are selling as well as the new home you are planning to buy. It will be used as a down payment on a new house by borrowing off equity on the existing house. Some of the pointers you should put in mind is that when you get this loan then it will allow you to use the net equity from the existing home for sale.
What you should note about this loan is that it will save you time. It save you time since it is designed to generate the funding for a new home purchase when the existing home should be sold. The settlement will not be obtained until when the existing home has been sold. You should note that with this option then you will have to move in the new house for several days rather than last minute when the old house closes.
Ability to choose the repayment option. Most of the mortgages will force the borrowers into a long term option. What you should note is that this is not the same option when you get a bridge loan. The borrowers can be able to pay the loan either before or after the permanent financing is secure. What you should know is that when one opts to pay it before then they can do it in structured payments over a fixed period of time. When you do the payment on time, then you should note that the credit rating will improve. This will lead to you getting a lona that in most cases you do not qualify for. When a borrower chooses to repay loan after the financing is secure, a portion will be used to repay the bridge loan.