In today’s market, finding the perfect home can feel like winning the lottery. The problem? You may find it before your current home sells.
That’s the emotional tug-of-war many homeowners experience. They don’t want to miss the opportunity to buy the right home, but they also need the equity from their current home to make it happen. Too often, they’re told their only solution is an expensive bridge loan.
But is it?
Bridge Loans Aren’t Your Only Option
Bridge financing can be an effective solution in the right circumstances, but many homeowners don’t realize it often comes at a significant cost.
Depending on the lender and program, bridge financing may require the borrower to pay points that are 2% to 4.5% of the loan amount, adding thousands or tens of thousands of dollars to the cost of buying your next home. For some borrowers, those costs make sense because the bridge loan solves a timing problem. For others, they may be paying far more than necessary simply because they weren’t aware of other financing options.
Get Pre-Approved Before You List
One of the biggest mistakes sellers make is waiting until they’ve accepted an offer on their current home before speaking with a mortgage professional.
Meeting with an experienced mortgage loan officer before listing your home allows you to:
- Understand exactly how much equity you’ll have available.
- Determine how much home you can comfortably purchase.
- Compare bridge financing with other mortgage solutions.
- Evaluate programs that may eliminate the need for costly bridge financing altogether.
- Create a strategy that positions you to make a competitive offer when the right home becomes available.
Having this conversation early gives you choices instead of scrambling to solve financing challenges after you’ve already fallen in love with your next home.
Every Situation Is Different
Some homeowners qualify for financing options that allow them to purchase before selling without paying the premium associated with many bridge loans. Others may benefit from recasting a mortgage after their current home sells, using specialized loan products, or leveraging other equity-access strategies. The right solution depends on your income, assets, equity, and overall financial goals. That’s why there is no one-size-fits-all answer.
Don’t Let Financing Dictate Your Dream
Buying and selling a home at the same time is both exciting and stressful. The excitement of finding your dream home shouldn’t be overshadowed by unnecessary financing costs.
Before you list your current home, invest a little time in understanding all of your mortgage options. A comprehensive pre-approval with an experienced mortgage professional can help you compare strategies, potentially save thousands or tens of thousands of dollars, and give you the confidence to move quickly when the right home comes along.
The best bridge isn’t always a bridge loan. Sometimes it’s simply having the right plan before you put your home on the market.
BIOGRAPHY –
award‑winning Sr. Mortgage Loan Officer with Point Mortgage, serving Southern California homebuyers.
Whether you’re buying, selling, refinancing, or building your dream home, you have a lot riding on your loan specialist. Since market conditions and mortgage programs change frequently, you need to make sure you’re dealing with a top professional who is able to give you quick and accurate financial advice. I have the expertise and knowledge you need to explore the many financing options available.
Ensuring that you make the right choice for you and your family is my ultimate goal. And I am committed to providing my customers with mortgage services that exceed their expectations. I hope you’ll browse my website, check out the different loan programs I have available, use my decision-making tools and calculators, and apply for a loan in just four easy steps with the short form Application.
After you’ve applied, I’ll call you to discuss the details of your loan, or you may choose to set up an appointment with me using my online form. As always, you may contact me anytime by phone, fax or email for personalized service and expert advice.
| Greg Gossard, 246668 Sr. Mortgage Loan Officer Point Mortgage Corporation |
| m: 858.212.5626 (LOAN) |
| ggossard@pointmtg.com |
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