In the world of real estate and financing, having the ability to pay sellers the soonest possible time could spell the difference between getting the home you want and having to go through the search process again. But buyers don’t often have the means to come up with the cash to pay the down payment, especially when moving from one home to another and their current property hasn’t sold yet.

 

This is where bridge loans come in.  These short term loans essentially bridge the gap between the sales price of a new home and the buyer’s new mortgage. Essentially, it uses the equity from your current home to for the down payment on the new one. This allows you to gain some extra time and peace of mind since there’s no need to rush the sale of your current home.

 

Is taking a bridge loan right for you? Here are the reasons why you should get a bridge loan. 

 

Saves Time

Bridge loans typically have a faster application, approval, and funding process than traditional loans, since you’re using your current home’s equity. This means you can almost immediately make an offer and payment on your new home without waiting for the old one to sell.

 

Flexible and Short Payment Terms

Some bridge loans may not require monthly payments for a few months, and some even offer the flexibility of paying when they have the cash flow. Compass Bridge Loan Services even offers Bridge Loan Advance, an exclusive Compass client deal which offers six months of your bridge loan payments and other associated costs fronted. Bridge loans also have short terms, typically for a 6-month period, but some can extend up to 12 months. This means you can pay off the loan faster and sooner.

 

Purchasing Convenience

Getting approved for a bridge loan gives you the advantage to close the sale on a new home even though your current one hasn’t been sold yet. This means you can secure your new dream home without having to wait.

Contingency Advantage

You can use a bridge loan to make an offer on the home you want without a financing contingency. Plus, if you have initially offered a contingency on a home, you can even remove the contingency to sell and still move forward with the purchase.

 

 

 

If you’re looking to try for a bridge loan, you need not look any further. Compass offers Compass Bridge Loan Services, our simple solution to bridge the gap between the home you have and the home you want.  After months of research, Compass has selected lenders that are offering competitive rates and dedicated service for Compass clients. 

 

Unlike other bridge loan services, Compass also offers Bridge Loan Advance, available exclusively for qualified clients with a traditional bridge loan who are working with a Compass agent. This service offers 0% APR for the life of the loan and no additional application or closing fees once you are approved and can equal up to 6 months of monthly payments and eligible closing costs incurred from the bridge loan, and eligible closing costs include: (1) the dollar value of any points paid upfront, (2) origination or application fees where applicable; and (3) appraisal fees.