As a repeat home buyer, we often face this situation. Our existing home has been sold but we have to move before our closing date. The most common solution to this is to get a Bridge Financing. As the name suggests – it bridges the gap between two closing dates. So, the situation looks like – our money is stuck in our existing home and we need to move into our new home before we close our existing home. The situation is bit tricky.
There are mainly two types of Bridge Loans – 1) Closed – with a fixed payoff date and 2) Open – where the exact payoff dates is uncertain. Both have their own risks associated with them and may cost you differently. We can help you to find the right solution. We welcome you to consult our analyst today.