If you want to buy a house, but you are unable to sell your house to get money, then you should take the bridge loan. This article will highlight on a few important reasons why people select this type of loan for their financial requirements.
This type of fund is suitable for the borrowers who have poor credit records because the lenders consider their potentialities to repay them in the future and do not give emphasis on past history.
The application process is fast and simple. You can even send online application and receive feedback within short span of time.
There are several proficient financial advisors who have gathered a vast knowledge about these funds and they are ready to answer your relevant queries and help you to make the right decision. Most advisors do not even charge money for financial consultation and guidance.
The borrowers do not need to posses real estate property or other asset in order to send an application for the loans. These funds are ideal for the people who are unable to show collateral when they apply for them. If any problem arises during the acquisition process, they can also take help of the customer support employee of a particular lending organization.
It is mandatory that the borrower should be more than twenty one years old in order to apply for the funds. However, you can get it even if you are under eighteen years of age and you have a full time job.
When you possess a home in the market, it is often difficult for you to get an equity loan to buy a new house. However bridge loan is used even when you possess a house. This type of temporary fund reduces the huge gap between the sale price of a new house as well as new mortgage. You have the opportunity to get short term fund backed by your current home and you can use it for different purposes such as loan repayment, down payment cost and so on.
The borrowers can get two types of bridge loans for real estate property mortgages. You can borrow the fund in order to pay the mortgage on the current house and at the same time you can get money for the purchase of a new house. The second type allows you to retain old mortgage as well as borrow money in opposition to the equity that you have built in the current house. The equity is used to make payment for a new house.
It is important to remember that each lender sets up own rules and guidelines for application and repayment processes. For example, there are a few lenders who offer money to the borrowers who have high income and are capable of make payment of mortgages. In a nutshell, this type of fund proves to be a great help for a borrower in transition between purchasing as well as selling your house.