BY PETE SABINE
A bridge loan is a short-term loan that uses the equity from your current home to help you make an offer on a new one, without rushing to sell. A bridge loan is a simple solution to bridge the gap between the home you have and the home you want to buy.
A bridge loan can be a viable option if you can cover the cost of the loan along with the additional monthly payments due until your current home sells to pay off the short-term bridge loan.
Here are the key benefits of a bridge loan to buy your next home:
• Avoid weakening your negotiation position with an offer contingent on the sale of your home.
• Take the anxiety of selling your home first without having another home to buy in a competitive real estate market with limited inventory.
• Avoid the hassle and expense of a double move.
The Bridge Loan Advance Solution
The Compass Bridge Loan Advance is available exclusively for our qualified clients with a traditional bridge loan who are working with us to sell their existing primary residence. If you are approved for the Bridge Loan Advance, it has a 0% APR for the life of the loan and has no additional application or loan fees.
What rates and fees accompany a bridge loan?
The rates and fees for each bridge loan are determined by the lender. We recommend reaching out to a bridge loan lender directly to learn more. The bridge loan can be from any lender of your choice.
What is covered by the Bridge Loan Advance?
The Compass Bridge Loan Advance can equal up to 6 months of monthly bridge loan payments and eligible closing costs incurred from the bridge loan. Eligible closing costs include the dollar value of any loan fees paid upfront, origination or application fees, if applicable, and appraisal fees.
How it works
Step #1 - Inquire directly with a bridge loan lender, such as Better.com or Freedom Mortgage, to see financing options and conditions for your loan qualification.
Step #2 - Apply to get pre-approved for a bridge loan with the lender of your choice.
Step #3 - If approved for a bridge loan, apply with Notable, an independent lender, for the Bridge Loan Advance to cover the first six months of your bridge loan payments.
Step #4 - Then use your approved bridge loan to strengthen your offer for your next home.
Step #5 - Move into your new home while we market to sell your current home.
Pro Tip: Use Compass Concierge home improvement services to sell your home faster and for more money.
Step #6 - Use the proceeds from the sale of your former home to pay back the bridge loan and Bridge Loan Advance.
Contact us to find out the current value of your home to determine if you have enough equity for a bridge loan.
Call or text 925.297.5335. Pete Sabine & Leslie Whitney. Compass #00889760