You already own a house, but one day you hear that the
house you have desired for years is on the market. Out of curiosity, you call
your favorite Realtor and arrange to see if the inside of your dream house is as
terrific as the outside, and--suddenly you are in love. The sellers need a
relatively fast settlement, and are not in a position to accept an offer that is
contingent on selling your home before closing on the new one. While you are
confident your house will sell fairly quickly, you can never be sure in a
fluctuating market.
A bridge loan may be the answer to your situation. Many lenders
specialize in providing short term loans for just this type of situation. The
principal and interest is paid back when you close the sale of your present
house. If the market in your area is strong and there is a good possibility of
selling your home quickly, or if you are willing to offer your home at a price
that will move it in a sluggish market, then a bridge loan is a tool that could
make the home you love a real possibility. A good Realtor and a knowledgeable
loan officer are the team you need to turn this kind of possibility into your
future.
