There is a reason bridges were invented. They allow safe and easy passage over a river or canal or hole in the ground. We could get from A to B without the bridge. We could swim, build rafts, go around the canyon but with the option of a good, solid, structurally sound bridge, why would we?
When you are moving, the same principle applies. When you are moving from A to B, you could close your current home as well as the home you are moving to on the same day. You could deal with moving trucks, buyers of your current home and sellers of your new home and the imperfect concept of everyone getting keys and access to their new home all at the same time. You could also repeatedly stub your toe on the coffee table. But why!?
Or you could spend the equivalent of a dinner out in order to get the banks permission to allow you to have both your current home and your new home for a few days at the same time.
The bank simply charges a daily interest rate on the amount of money that they are waiting to get. This can amount to a hundred or two hundred dollars to have both homes for a few or more days, of course depending on values and down payments. Ask anyone who has moved with and without bridge and I’ll be jaw-dropped shocked if they said they would buy without a bridge again.
Now, the only big misconception we hear out there is when you can bridge. The only time you will be able to arrange bridge financing is once you have firm, binding contracts in place both on your current home and your new home. You are not able to make an un-conditional offer on a new home based on the concept that you’ll get bridge financing on your current, unsold home. The day both homes are sold, done, signed, sealed and delivered is the day you can stroll on into your bank of choice and get that bridge arranged.
So, long’ish story short…whenever humanly possible, look into getting a bridge setup in principle so you know your numbers and when the time is right, those important ducks are already in a row.
Need help? Let us know. We are happy to help you get this arranged.
Enjoy your day and as always, thank-you for visiting.
Thank-you for visiting.
Patrick, Jim and Liana.