existing home can be a stressful and complicated process. A Short term Arizona bridge loan can be a valuable took
to ensure you are able to buy the home you want and sell yours more easily.
first home, you probably don’t think too much about the timing other than
issues like no one wants to move in the summer or when your lease is up at your
current rental. However, once you are looking to upgrade from your starter home
to something larger, timing become essential. Most buyers need to use funds
from their current home to fund the down payment on their new home. In an ideal
world, you would be able to close on your home in the morning and close on your
new home the afternoon of the same day. This sounds ideal but it rarely
happens. Due to market conditions and the stress of showing a home, trying to
sell and buy at the same time can seem almost impossible.
You may find
yourself stuck between a rock and a hard place. Although you can qualify for
both home loans, you can’t produce a down payment for the new home without
selling your existing home. Your home may not be getting any offers because a lived
in home does not show as well as a vacant or staged home, but you need
somewhere to live until you can purchase a new home. An Arizona Bridge loan is a specialized type of short term loan that can
to help bridge the gap between selling your home and buying a new property. A
bridge loan is a short term loan that you can get in addition to a home
mortgage to cover the down payment. You will make payments on the bridge loan
until you sell your first property and can pay the loan back in full. The
bridge loan is contingent on the equity in the home that you are selling. An Arizona Bridge Loan has low debt to income
ratios and no set amount of paperwork for closing. Rather than being based on a
FICO score or income number, bridge
loans are based on what makes sense for each financial situation.
Benefits of An Arizona Bridge Loan
have several benefits for the borrower. Namely, they allow them to put their
existing home on the market without being inconvenienced with appointments for
showings. Because the owners have already purchased and moved into their new
home the home on the market can be de-cluttered and staged for optimum showing.
Staged homes sell more quickly and for higher dollar amounts that homes that
are lived in during showings. If getting top dollar for your home is your goal,
a bridge loan may help you move into your new home so that your existing home
shows at its best.
require payments for a couple months. Some mortgage brokers can get deals where
you won’t make payments on a bridge loan for up to four months. If you are able
to sell your home during that time you won’t ever have to make a monthly
payment on the bridge loan as you can use the cash you get from selling your
home to pay it off.
Bridge loans can help you find and buy “the one” before your home sells. You can always make a contingency offer, meaning that you will purchase the home when yours sells. However, if you are in a multiple offer situation or a seller’s market, having a contingency offer accepted can be tricky. A bridge loan gives you the cash you need to buy the home before your home sells.
Call our office today to learn more about how bridge loans can help make your dreams come true!
Dennis Dahlberg Broker/RI/CEO/MLO
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
23335 N 18th Drive Suite 120 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701