There are indicators that we could have a brisk real estate market this Spring since the Federal Reserve did not raise its rates which almost assures no rise in mortgage rates. Even better, as the recent Wall Street numbers spiked up, optimism is creeping in because Janet Yellen told reporters after the Fed’s meeting that interest rates should be ticking down throughout 2024! Of course, that’s not written in stone, but a good reason to plan ahead if you’re thinking of selling your home. Declining interest rates should bring many hesitant buyers into the market.  That, combined with chronically low inventory, means we will probably see bidding wars spike again.  If you are thinking about selling your current home but are concerned about the competitive market in buying your next, you may want to think about using a bridge loan to buy your next home before selling your present one.


As the name indicates, a bridge loan helps link you with where you are now to where you want to go. Specifically, if you are trying to be best prepared for the Spring market, a bridge can give you the money to buy your next home before you have sold your present home. This type of financing can cover expenses such as mortgage payments, renovations, moving costs and the like that are ancillary to buying a new property. After you have closed on your new property, you can then turn to selling your current home.  Once that is completed, the proceeds from the sale are rolled over to pay off a portion of the bridge loan.  The remainder of the loan is converted to a standard 30- or 15-year mortgage.


A bridge loan usually is easier to obtain than traditional bank loans with less dreaded paperwork and fewer requirements. Why? Because the loan is fully collateralized and is written for a short term. Even with 100% financing the bank’s exposure to risk is very low, even minimal because the lender has both homes for security. There can be differences among lenders, but those who are noted for bridge loans offer approvals within 24 hours, a smooth closing within 10 days, no contingency cash offer, and do not require formal appraisals.


Other features that are very favorable for bridge loan borrowers is that interest rates are lower than other short-term financing options such as credit cards or payday loans. It’s also an effective way to leverage existing assets without the need to sell them for the cash you could obtain from a bank. These loans are flexible in that they can be structured in a variety of ways such as customized repayment terms and negotiable interest rates.


We are always available to discuss and point you in the right direction regarding the different aspects of the bridge loan, or any other loan that would suit your needs. Along with that, we would be happy to discuss with you the easiest possible way to move from your current home. Whether you need help with decluttering, estate sales, or just simple staging, give us a call, we


would be happy to help you with whatever is needed to get you on the path to your new home!