If you wish to buy a new house before you sell your old house, it is advisable that you should obtain a bridge loan from a reliable lender.
Generally, this short term loan is obtained by a borrower against your current house in order to purchase a new one without any kind of difficulty.
It is also called a swing loan and its total loan term is six months and it can even increase up to twelve months.
This type of fund can be obtained when a borrower shows his willingness to renovate his huge house, but at the same time he is unable to sell his current house to a suitable buyer.
In the current market, two categories of bridge loans are widely popular amongst the borrowers.
In fact, if you have already signed the necessary contract with the potential buyer of your house and if you want to sell your property as quickly as possible, then it is advisable that you should obtain this type of fund without any kind of delay.
Another category is an open bridge loan, where you do not have to repay the money within fixed date, but it is advisable that you will repay it at least within twelve months.
Whether you want to obtain a closed bridge loan or you wish to get hold of an open bridge loan, it is vital to remember that you should be able to show concrete evidence of your own loan repayment strategy.
Whether you wish to use equity from your property sale or you wish to extract mortgage in the best possible way, it is advisable that you should inform all the details to your lender as quickly as possible.
All you have to do is to give evidence of your new property that you wish to purchase and the total amount of money that you want to acquire in order to pay for your house to your lender.
If required, you also have to provide relevant proof of your actions that you want to take in order to sell your old property.
Those who have poor credit scores and who want a huge amount of money within a short period of time should try to obtain these loans as quickly as possible.
All the lenders who are associated with the relevant industry should understand that these loans only offer temporary funds and they are not considered to be long term financial solutions for all types of businesses.
There are a few lenders who also customize these loans in order to cater to the requirement of different types of businesses.
Unlike conventional loans, these bridge loans can be obtained quickly and they can be obtained without any kind of difficulty.