In today’s B’s Finance Minute, let’s talk about bridge loans.
Bridge loans help sellers with the downpayment and closing costs when the sale date is AFTER the closing date of the purchase. For example the closing date of the purchase is June 12, but the sale closes on June 30.
This happens when buyers want to move in sooner so there’s less stress and to do some early touch up and clean up. The bank lends the downpayment in advancesince the money from the sale is not yet available.
Many realtors who don’t get this misinform their clients. They say “Don’t worry if you haven’t sold your place, as long as you can get a bridge loan you are fine.”
This is wrong. The reason why it’s called a Bridge Loan is because it’s bridging the gap between the sale date and the purchase date.
If there is no sale date, there’s nothing to bridge. The bridge loan is allowed only when there is an accepted offer of sale. No sale-No bridge!
If you want to learn more let’s talk and by the way, please like and share to help others learn more about Bridge Loans.