Buy Before I Sell - Bridge Home Loans In Palmdale

Frequently Asked Questions About Bridge Loans

Bridge Loans VS. Regular Mortgage

Unlike typical purchase loans (otherwise known as fixed-rate mortgages) — which are relatively standard, straight forward to qualify for, and reasonably easy to mitigate risk on — bridge loans carry a bit more risk to both the borrower and the lender. Buyers that wish to take on new debt before offloading a significant asset, in most cases, spooks most lenders and is not an ideal situation. 

As a result, to qualify, buy before you sell loans require:

• At least 20 percent equity in your existing home. We must see you’ll be in a stable financial situation whenever you finally sell your house.
• Ability to afford multiple loan payments. We do due diligence to ensure you’ll be able to make two mortgage payments at once since you’d still be paying off your old home while taking on new financing. Cash reserves and proof of income are the keys to success here. 
• A thorough assessment of the housing market. While nothing is guaranteed, a strong housing market gives lenders peace of mind and assurance that you’ll be able to take out equity from the transaction once you sell your house. 
• Great-to-excellent credit. It’s important to lenders to see that you’ve successfully managed the challenges of paying off debts in the past. Credit bureaus look for various factors in your credit history, but assuming you make timely payments and aren’t over-leveraged, your credit score should enable you to qualify. 

Able to afford multiple loan payments at once? Get in touch with our team today to see how we can help secure a bridge loan for your new home purchase in California and the Palmdale area.

Can I get a loan before I sell my house?

Yes - but you’ll need to meet specific approval requirements in order to qualify for a Bridge Loan. Our mortgage consultants can help determine if you meet the criteria to purchase a new property in 93551 before selling your existing home.

How to qualify for a Bridge Loan in Palmdale?

You’ll need to provide us with proof of income, have at least 20 percent equity in your existing home, and a solid credit history and score. Additionally, bridge loans may take the current real estate market into consideration when determining if you qualify.

Do I have to sell my house first before buying another?

Not necessarily. If you can qualify for a bridge loan by meeting some of the criteria mentioned above, you may be able to purchase your new home before finalizing the sale of your current home. With that said, bridge loans are usually available on much shorter terms than traditional purchase loans, so be prepared to sell your existing home within a reasonable time frame. 

Should I pay off my mortgage before selling my house?

As long as you can prove that you have 20 percent or more equity in your existing home, you won’t need to pay off your current mortgage before moving forward with a bridge loan. The whole purpose of a bridge loan is to bridge the gap between your transition from one home to another.