Practical and Helpful Tips: Loans
6 months ago admin Comments Off on Practical and Helpful Tips: Loans
It is easy to get a job when you already have one. It is the same way you can be able to get a job when you have one. You can do this if you get a bridge loan. However, with this loan, you will be required to leave your current job and get a new one. You will need to sell the home so that the money you get can be used to fund your new home. What you should know about this option is that when you are buying a house then the company financing you will need you to use 80% of the money you used to sell the old home as down payment. Therefore, it is necessary for you to find out what you stand to gain when you get a bridge loan.
Bridge loan is a short term loan that acts as a bridge of the credit of the existing home you are selling as well as the new home you are planning to buy. It can be used as a down payment of a new home by borrowing off investment in the existing house. Some of the pointers you should put in mind is that when you get this loan then it will allow you to use the net equity from the existing home for sale.
The bridge loan will save you time. You should know when you get it, then it can be used to generate new funding for a new home purchase when the existing home has been sold. The settlement will not be obtained until when the existing home has been sold. What you should know about this is that you can be able to move into your new home for several days rather than having to move out under pressure when your old house closes.
This is paramount as it allows you to choose the mode of repayment. You should put in mind that most of the mortgage will force those who are borrowing into a long term option. You should note that this is not the same case with the bridge loan. The borrowers can be able to pay the loan either before or after the permanent financing is secure. When you choose to pay it before, you can be able to pay it in full or structured payment. When you do the payment on time, then you should note that the credit rating will improve. Thus, this will make you eligible for a loan that you will normally not qualify for. What you should note is that I the borrower chooses to repay the loan after the financing is secure then part of it will be used to pay the bridge loan.