I find so many people are confused or unaware of the various products or services or even terms commonly used in a real estate transaction, so I thought it would be helpful to add this section to my newsletter. I hope you find it useful, and if you have any particular terms you would like for me to deep dive into, reach out and let me know, it would be my pleasure.
Bridge Financing: Is a short-term loan, it can be utilized anywhere from 2 weeks to 3 years pending the arrangement (oftentimes the closing of a property) of a larger or longer-term financing.
Bridge financing would be required if you were in a situation (which happens quite often) where the closing date for the home you’re purchasing is before the closing date of the home you’re selling. This oftentimes leaves you without a down payment for the new home because your funds would be tied up in the equity of the home you have not yet sold.