A sell one property and acquire another, but the sale of the first property is taking more than you expected.
Understanding the Dynamics of Private Bridge Loans
Most providers of bridge loans happen to be financiers outside the traditional banking system. Lenders are willing to give you the loan and hope to profit from the interest.
You Can Access Your Other Home’s Equity
You are borrowing to purchase another home. The first home can act as collateral for the duration of the bridge loan. Private bridge lenders have terms that allow you to sign the loan before you sell the first home.
The calculation for a bridge loan comes from the combined value of the house you already own and the one you want to buy. You can then rely on the equity on your original home or any amount that you may have saved.
Why You Should Choose Private Bridge Loans
Private bridge loans eliminate the frustration of waiting for the tedious process of signing paper works. A private bridge loan lender does not require you to sell your original home first. The deal provides enough funds for a down payment.
Lenders are lenient enough to allow you some months of grace before you can start paying monthly installments. As such, you can take your time and sell your other home without pressure.