Sometimes you want to buy a home before you sell your current home and you don’t have the profits of the home you are going to sell yet. A bridge loan is a short-term loan used to bridge the gap between buying a home and selling your previous one. This can be a challenge if you were depending on that money to buy your new home. In the meantime, you can apply for a bridge loan to help finance a home purchase.
Why Use a Bridge Loan?
- Time-sensitive real estate transactions: Bridge loans are often used when a borrower needs to purchase a new property before they have sold their existing property. In such a scenario, a bridge loan can help them bridge the gap between the sale of their existing property and the purchase of a new one.
- Access to quick capital: Bridge loans can provide access to capital quickly when the borrower needs it urgently. Compared to traditional loans, bridge loans can be funded within days, making them an attractive option for borrowers who need funds quickly.
- Flexibility: Bridge loans offer more flexibility than traditional loans because they are usually shorter-term loans. They can be structured in a way that meets the specific needs of the borrower, with customized repayment terms.
- Property renovations: If a borrower needs to renovate or improve a property before selling it, a bridge loan can be a useful option to finance the renovation costs. Once the property is renovated, it may be easier to sell it at a higher price.
- Real estate investing: Real estate investors often use bridge loans to finance their real estate investments. Bridge loans can help investors purchase a property quickly and provide them with time to secure long-term financing.
- Credit issues: If a borrower has credit issues or is unable to qualify for a traditional loan, a bridge loan may be an option. Bridge loan lenders may be more flexible in their lending criteria and more willing to take on riskier borrowers.
Why Choose a Massachusetts Bridge Lender To Help You?
There are several reasons why you may want to choose a Massachusetts bridge lender:
- Knowledge of the local market: A Massachusetts bridge lender will have knowledge of the local real estate market and can provide valuable insights into the specific market conditions that may affect your loan.
- Quick funding: A Massachusetts bridge lender can typically fund loans quickly, which can be important when you need to secure financing quickly to take advantage of a real estate opportunity.
- Flexibility: Massachusetts bridge lenders tend to be more flexible in their lending criteria than traditional lenders, which can be especially helpful if you have credit issues or other factors that may make it difficult to qualify for a traditional loan.
- Customized loan terms: A Massachusetts bridge lender can often customize loan terms to fit your specific needs, including the loan amount, repayment period, and interest rate.
- Personalized service: A Massachusetts bridge lender may offer more personalized service than a larger, national lender. This can include direct access to decision-makers and a more streamlined application process.
- Local reputation: A Massachusetts bridge lender with a strong local reputation can offer added credibility and assurance that your loan will be handled professionally and efficiently.
How does a bridge loan work?
A bridge loan will help provide funds for your new home purchase if you do not have it readily available. You can apply for a bridge loan with Drew Mortgage. Although terms may vary, it’s standard to borrow a maximum 80 percent of both your home’s value and the value of the home you wish to buy.
Why Drew Mortgage?
Drew Mortgage Associates, Inc. is more than a mortgage lender. We’re comprehensive mortgage planners. We can help provide you with mortgage loans or refinance your loans to a lower interest rate or reduced term. Our professional home loan officers will provide you the best mortgage loan that suits your financial needs. We will assist you throughout your mortgage loan process and will guide you while filling up the mortgage loan application form. Drew Mortgage Associates, Inc. is the most preferred mortgage company in MA. If you’re struggling to close with traditional mortgage companies in MA, Drew Mortgage Associates, Inc. can help!