July 9, 2008
What Is A Bridge Loan?
What Is A Bridge Loan?
There are many great loan programs being offered in the market nowadays that could really answer you present financial need. One of the best loan programs available in the market is the bridge loan program. Now, don’t start thinking that this loan is intended for those construction companies that build bridges because that is really very far from the real nature of a bridge loan.
What is a bridge loan?
For those of you are not familiar with this term, it is actually a short-term bank loan, which you can avail from a bank based on the equity of the home you are selling. This loan is intended to bridge the gap and fill your needs at the moment when you are still in between selling a home and buying a new one. How does a bridge loan program works? Bridge loan is an interim financing, which could help you knot a situation.
For instance, you are selling your old home but before you can close down your old home, you will need a place to live. Taking a bridge loan will help you buy the new home before the payment of the old home is actually is actually received. The key to get a bridge loan is to have a qualified buyer of your old home and a written contract signed by the buyer and you that the buyer is indeed going to pay for the home you have put up for sale. If you have this document, the bank or the lending institution will now issue a bridge loan or an interim financing will be settled as soon as the payment of the old home is received.
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