If you want to sell your current property and purchase your next dream home, you might be concerned that the closing dates need to be on the same day. You might be worried about losing a property if the closing dates overlap, or being put out on the street if the dates are far apart. For the most part, these concerns are unfounded.
Thousands of properties change hands every day and usually everything works out just fine. In fact, it’s amazing how often closing dates actually do match. But what happens if the closing date of the home you want to buy is days or weeks earlier than the closing date of your own property? Most lenders anticipate this situation and offer something called “Bridge Financing”. Bridge Financing is a special loan that allows you to purchase the property with the earlier closing date. When your current property closes, the bridge financing ends and your new mortgage begins on the new home.
Alternatively, if the home you want has a later closing date, you can explore other options, such as finding a short-term rental. This may be more beneficial depending on your situation. If you have any questions about bridge financing, feel free to contact me.