Save Time With a Bridge Loan

Why You Need a Bridge Loan

You have to move fast in todays housing market if you want to get into the home of your dreams. In cities such as Seattle or San Francisco its not uncommon for a buyer to receive half a dozen offers within the first day or two after putting the house on the market.

Unless you have enough excess income to buy a second home without selling your current abode, you will have to play the timing game; finding a home to purchase while finding a buyer for your own. This can be especially sticky if you are buying in an area with a hotter market than the one youre leaving. Most sellers wont be willing to accept contingent offers (you buying their home is contingent on you selling your home) because of the overwhelming demand in the area manifest by the numerous potential buyers beating down their door.

Under these competitive conditions, a bridge loan may be just what you need to avoid missing out on a time sensitive real estate purchase. Not sure how to go about securing a bridge loan? Eventually youll go through a bank or private lender to get a bridge loan, but it pays to know the basics before you set foot into the local loan office.

Bridge Loan Basics

Strictly defined, a bridge loan is a form of second trust that is collateralized by your present home in a manner that allows the proceeds to be used for closing on a new house before the old house is sold.

The fact that you are not immediately required to sell your old home makes a bridge loan the logical solution for people in relatively cold markets who need to act quickly in order to close on a new home.

Most people who get a bridge loan will use the extra cash to pay off the mortgage on the old home, deduct any closing costs and prepaid interest, and put the remainder towards a down payment on the new home.

A bridge loan entails substantial risk for the lender because the old home may not sell for some time. Therefore, you can expect relatively high interest rates and short terms of six months to a year. The borrower usually begins making interest payments after the end of the term if the old house still hasnt sold.

After the old home sells, the bridge loan is paid off. If the house sells within the term limit, all unearned interest is credited back to the borrower.

Get Professional Bridge Loan Advice

Before you sign on any dotted lines, make sure the lender youre working with has taken all the time you need to explain bridge loan details to your satisfaction. Depending on your individual situation, securing a bridge loan can be somewhat complicated. Having a relationship of trust with your lender can help simplify the process.

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About the author:

Cameron Brown in an internet marketer specializing in investment property. For more information about how a bridge loan can benefit you, please visit SNC.



Want A Cheaper Finance For Your Vehicle? Try Secured Automobile Loans.Maria SmithThe usual modus operandi in most automobile purchases is as follows.

Step 1: Recognize the urge for an automobile.
Step 2: Check the bank balances.
Step 3: Head for the purchase provided the second step gives a positive result.
Step 4: If the second step gives a negative result, take an automobile loan.

This will be rated as the most logical sequence of events by most people unless they acknowledge the fact that they can save hundreds of pounds by planning the automobile loan in a more systematic manner.

Recognizing the need for an automobile:
The first step will always be to concede that there actually is a need for a car or any other vehicle. The prices of vehicles have heavily come down. But they still continue to be treated as a luxury item. The desire to have a vehicle will always be there. People wrongly try to push desires as a need. Need emerges because of a difficulty being faced by the borrower. Only if a need is recognized must one go to the second process.

Check for capability:
The automobile certainly would not come for free. One must have the capability to repay the value of the vehicle purchased. Fat bank balances are not always required. Taking a secured automobile loan allows investment in more productive uses while making you the proud owner of a vehicle.

There is no need to get disheartened if you do not fulfill the qualifications. Every lender has a different lending policy. Given the numerous lenders offering mortgages, your financial condition is bound to match some or other lenders products.

Stretching ones finances too much will lead to a breakdown in the financial condition. The vehicle is not the only expenditure on your part. There are many more expenditures to be borne by the customer. If the sum invested in the vehicle exceeds, the other expenditures will have to be curbed. Alternately, this would have an adverse effect on savings.

Therefore, the amount of secured loan must be decided with care. Once inside the showroom, almost every vehicle looks good. But one must vote for the vehicle that most suits his budget.

The loans process:
If you thought there is little to an automobile loan after making the decision to take it, then you are wrong. You are still halfway in the loans process. The implementation part is still remaining.

The first step in the loans process will be finding a suitable lender. Though there is a single lender who offers automobile loan, it is difficult to find the lender from the crowd of lenders. The various lenders chosen have to pass through various stages of screening to prove that they can provide the loan at the best of terms. Online search significantly simplifies the process of search. No obligation loan quotes offered by the lenders too are of great help in the search process.

Once the lender is selected, the negotiations on the loans begin. Details of the loan like the term of repayment, interest charged, actual cost of the loan, amount of monthly or quarterly repayments etc. are to be decided in this stage. This is the most important step because this will decide how the loan fares in the long run.

The borrowers are advised to tread cautiously in this stage. The terms and conditions of the lenders must be read carefully. Particular attention must be given to clauses which rule out early or premature repayment with a penalty. All queries regarding the loan must be immediately clarified to prevent problems from emerging in the future.

The days ahead.
Has the loans process sucked most of your energy? You can rest now because the days ahead are a smoother ride. You finally get the resources to purchase the vehicle of your choice. Secured automobile loans give borrowers a better bargaining power. Regular repayments to the automobile loan can further assure a smoother future. Taking a loan protection can be helpful in full and final settlement of the secured automobile loans.