Cash in Hand
The main advantage of bridge loans is that you will get the cash immediately. This means the money can be compared to cash in hand that can be used to sort the current issue associated with moving or buying a new home. It is the ideal option for financing time-sensitive transactions. For instance, if you need to start a new job in another town, you might only have a few weeks to move. Therefore, the bridge loan will provide you with cash to use in facilitating the moving exercise. Without such a loan, it would be difficult for you to get ready cash that will help in your moving.
Are you seeking a home bridge financing option that will provide you with the ready cash the soonest as possible? Bridge loans are your best option. These loans are issued as soon as you apply for them because the financing institutions understand their agency. They are an ideal option as compared to the traditional bank loans that would take days before being approved. If you plan to take traditional bank loans, you can be assured that they will not serve your intended purpose because you deal with a time-sensitive transaction.
The beauty of taking a loan is being able to repay it as expected. You risk damaging your credit score when you default on a loan payment. The lower your credit score is, the lower the chances of getting reliable loan amounts in the future. Therefore, before taking a loan, you need to be assured that you can repay it on time. Bridge loans have flexible repayment options such as interest-only payments and deferred payments until the current home is sold. Such flexibility highly reduces your chances of defaulting the loan, thus making bridge loans your ideal option in home bridge financing time-sensitive transactions.
Bridge Loans do not Need Contingency
When people need to sell their home to buy a new one, they will wait for the old home to sell to get funds for paying for the new home. This can be time-consuming, and the plan might not always go as planned.
Your current home might sell at a very low price, making it nearly impossible for you to afford the new home. In other cases, you might need to move to the new home the soonest as possible. Yet you have not found a seller for your current home. In such a case, a bridge loan would be of great help because it does not require you to place a contingency on purchasing the new home. The loan will offer you the finances you need to pay for your new home. And therefore, you do not have to wait for the current home to sell for you to move.