Bridge loans are short term financing for big problems that can keep you from getting the home that you want. Here we’re going to talk about how you can use a Toronto mortgage broker or a broker in your area to get a good deal on a bridge mortgage. We’ll also talk about how these types of loans work, if they’re really beneficial and then how you can figure out if they’re the right option for you. Never sign on to any type of financing without speaking to a professional first!
How do Bridge Loans Work Exactly?
Instead of hoping that you can sync up how your home is going to sell, a bridge loan gives you an alternative. You’ll be able to get the financing you need now and then pay it back later when your house sells. These won’t be available to you if you’re a first time home buyer; you have to have property now that you’re selling to be able to qualify for this kind of a loan. Instead of trying to sell your house before you buy a new house to sell, it’ll help you bridge your gap and get into a home faster.
Are Bridge Loans Hard to Qualify for?
Bridge Loans are actually pretty easy when it comes down to it; you will need to be able to prove your employment and your income. You’ll also have to be able to prove you have a home you’re trying to sell right now that you’ll be able to sell to pay back the loan later. There are so many different lenders who will offer these, but it’s smart to talk with a Toronto mortgage broker to see if it’s the right option for you. No two financing options are every perfect for everyone!
Is a Bridge Loan Right for You?
A bridge loan may or may not be the right choice for you, but before you know you’ll have to weigh your options to know for sure. Bridge mortgages, also known as a hard money loan, can cost you much more than a traditional mortgage. Since it does something that most mortgages won’t, bridge loans can be worth the money that you have to put into them. If you’re going to have your home on the market for another year, you may want to consider just saving up the money to make up the gap on your own. Interest rates can be a killer, and no one wants to throw away all of their money on interest payments!
Where is a Bridge Loan Applicable?
Usually bridge loans are taken to pay upfront for real estate properties whenever you come by a good deal. You might not have that kind of money to pay in such haste but if you delay any further, the offer might be availed by someone else. Moreover, if you are to start a new project for which a permit is being sought, a bridge loan might be taken. However, in such a case, the interest rate would be high because there is risk involving the permit. It can also be availed if in a joint venture, one partner decides to part ways while the other wants to retain the business.
Don’t Move Forward Without a Mortgage Broker
Before you look at different lenders, think about talking with a mortgage broker and see what options are right for you. You’ll have to think about whether you should just save up money, if you should just go ahead and get the loan or what; don’t let a mortgage broker or a loan officer push you in a direction that you don’t want to go in.
Mike Smith is working as a mortgage broker for a Toronto-based companyHome Base Mortgages. It offershome equity loans, home mortgages, second mortgagesmortgage refinancing, bridge mortgages, debt consolidation, and private mortgages.