The Bridge Loan And The Equity Loan

The purpose of these programs is to allow you to purchase (without selling first) by accessing the equity in your current home.  Keep in mind that you will need substantial equity in your current home in order to take advantage of either of these two programs.

• First off, you should think of the equity loan or the bridge loan as a type of insurance policy.  The goal is to understand the program, the process and the associated costs.  The objectives, however, are (1) not to use the program at all or (2) to just use one of the the programs for a very short period of time.

• The equity loan can only be used prior to putting your home on the market.  The bank will pull money from your equity and pass it along to you for your down payment and expenses associated with your purchase.  For more specific details on this program and process please contact your own mortgage representative or ask us for a recommendation!

• For the bridge loan, the bank will pull money from your current equity for the down payment and expenses associated with your purchase.  The bridge loan will allow you to “carry” two homes at the same time.  The cost of this program and the length of time you’re able to carry the two homes is related to the amount of your equity.  For more specific details on this program and process please contact your own mortgage representative or ask us for a recommendation!

Using The Bridge Loan For A Short Period Of Time:

• If you’ve managed to find a new home and have also found a buyer willing to close the same day as your purchase . . . CONGRATULATIONS!  You and your agent both deserve a lot of credit!  But even if that’s the case, you should consider the advantages of using the bridge loan for a short period of time.
  
• Without the bridge loan the closing sequence for two properties on the same day would run something like this:

• Move all of your stuff into a couple of trucks a day or two before closing
• Have the home in "broom swept" condition by the time of the walk-through (probably 8:00 AM)
• Close on your current home at 9:00 AM
• Wait until the closing is recorded at the Registry of Deeds (about 2 hours)
• Close on your new home (probably 1:00 PM)
• Start moving in around 3:00 PM (What a long, hectic day!)
  
• If you use the bridge loan (as an example) for two days, the closing sequence for both properties would run something like this:
• Start moving your stuff into trucks the day before or the day of closing
• Close on the purchase of your new home sometime in the morning
• Move into your new home starting that same morning
• Clean out your current home the next day to achieve “broom swept” condition for the walk-through tomorrow
• Close the next day on the sale of your current home

No matter how it's done, buying and selling at the same time is neither easy nor convenient.  But if you take some time to understand the process and the tools at your disposal it can be less hectic and a whole lot easier!

We'd be Happy To Assist With All Of Your Closing Details.

Please Contact Us At Any Time With Questions Or Concerns!

Doug Stamm - Re/Max Landmark

Email Address: HomeInfoSearch@comcast.net

Cell Phone: (508) 341-0989

Web Site: www.HomeInfoSearch.com