How to Apply For a Residential Bridge Mortgage Loan in Phoenix
Do you want to buy a new home but are somewhat short in cash? Are you waiting for your house to get sold before you can buy a new one? Good news! You can use a bridge loan to solve this problem.
A bridge loan can help you raise the amount you need as you transition between homes while the current one is not yet sold. Most homeowners looking for a new dream home have their money tied up in their existing home as part of their equity. So the usual process is to sell the house now, before buying a new one. The challenge lies in the fact that there is no guarantee that the home will sell, and waiting may make you lose out on the home you are planning to buy.
What is a bridge loan?
As the name implies, a bridge loan bridges the gap between you and your new dream home. This is a temporary loan option that gets you between the time your current house is sold up to the time you buy your new home. Then, you can use the equity of your existing house to pay for the equity of the new one.
Bridge loans are short-term solutions that can last from 6 months up to 12 months, or even longer. There must be a sale agreement in effect on your existing house to qualify for a bridge loan.
The entire process is faster than traditional loans, so this is a popular option for homeowners who want to purchase a new house while waiting for the existing one to get sold.
How can a bridge mortgage loan in Phoenix benefit you?
Bridge loans can help you buy the house you have been eyeing even before your house is sold. There is also lesser pressure in hurrying up to make a sale.
Bridge loans also let you use the equity for the current house to make a downpayment for your new one.
How to Apply for Bridge Mortgage Loan in Phoenix
Any lender will first check your financial health. So before you apply, make sure that you are a worthy borrower in the lender’s eyes. This means that you have to assess your business income and other financial information. If you have debts that you can pay off, take care of them.
There are several options for bridge loans, so do not limit yourself to the first one that you come across. Additionally, there are different options from one lender to another, so choose the best to cater to your needs.
Like any lending process, you have to compile your documents to assess your eligibility for a bridge loan. Lenders will want to see tax returns and other financial information that can prove your ability to pay.
As long as you have the necessary documents, bridge loans are not hard to get. However, you need to get an equally reputable mortgage company that goes the extra mile and is an expert in the industry, such as blakemortgage.com. They have vast experience when it comes to mortgages, and they can help you fulfill your loan requirements.