Real Estate Bridge Loan - Swing Loan Mortgage

Bridge Loan

Buy A New Home Before You Sell Your Current Home

Ready to kickstart your search for a new home, but waiting on your current home to sell? Avoid the financial stress of waiting to sell your current home to fund your new mortgage. A bridge loan helps "bridge the gap" between your finances and your dream home by providing access to funds for your down payment until your current home has sold.

How Does a Bridge Loan Work?

Bridge financing is a short-term solution that provides quick access to funding so you don't have to depend on the profit from the sell of a home for your new mortgage down payment. Your current home's equity can be leveraged instead, so that you can buy and sell a home at the same time.

There are a number of factors to consider before applying for a bridge loan. First Bank and Trust's Mortgage Bankers are ready to help you through the application process.

Securing a bridge loan is an important step in making your dream home a reality. It allows you to avoid waiting for your current home to sell and removes financial limitations. At First Bank and Trust Company, we make the qualification process straightforward.

The most important factors to consider:

Equity in Current Home: Bridge Loans leverage the equity in your current home. To qualify, you should have equity in your existing property, which serves as collateral for the loan.
Creditworthiness: A strong credit score is beneficial for approval. While credit requirements may be more flexible than traditional mortgages, a solid credit history can enhance your eligibility.
Ability to Carry Two Mortgages: Since a Bridge Loan is a short-term solution, you'll likely be carrying two mortgages simultaneously. Qualification may consider your ability to manage both payments during the bridge period.
Exit Strategy: Our Mortgage Bankers will want to understand your plan for repaying the Bridge Loan, typically through the sale of your current home. A well-defined exit strategy is key to approval.

Property Value: The value of the property you plan to purchase is a factor considered by our Mortgage experts when assessing the ratio of the Bridge Loan amount to the property value.

Repaying a Bridge Loan is a fundamental aspect of the loan process. With the help of your local Mortgage Banker, repayment can be made simple.

How to plan for the repayment process:

Sale of Current Home: When you take out a Bridge Loan, the sale of your current home is the primary way you'll be expected to repay it. Once your home is sold, the proceeds will be used to pay off the loan according to the terms specified in your loan agreement.
Term Structure: Bridge Loans are short-term loans that typically last a few months up to a year. It's important to note the repayment timeframe. Your loan agreement will outline the specific terms.
Interest Payments: You may be given the option to make interest-only payments during the loan term. This can provide flexibility in managing your finances while your current home is on the market.
Exit Strategy Planning: To ensure a smooth transition and timely repayment once your current home sells, it's essential to have a well-thought-out exit strategy. Your Mortgage Banker will work with you to develop a solid exit strategy.

Quick Access to Funds - Bridge Loans offer quick access to funds, allowing you to secure your dream home without waiting for the sale of your current property.
Larger Down Payment - With a Bridge Loan, you can put down a larger down payment on your new home, potentially strengthening your negotiating position and securing more favorable terms.
Seamless Home Buying Process - Avoid the stress of coordinating the timing of selling your current home and buying a new one. A Bridge Loan provides the financial flexibility to make a smooth transition between properties.
Competitive Rates - First Bank and Trust Company offers competitive rates on Bridge Loans, ensuring that you have a cost-effective solution to bridge the financial gap between your current and future homes.

Ready to experience the benefits of a Bridge Loan? Connect with our Mortgage Bankers at First Bank and Trust Company to explore how this short-term financing solution can enhance your homebuying journey.

Competitive Mortgage Loan Rates

At First Bank and Trust Company, we offer competitive mortgage loan rates for the life of your loan. Whether you need a fixed loan rate or to simply refinance an existing mortgage, our Mortgage Bankers will find a financing solution that works for you.

Since mortgage interest rates change frequently with the market, it’s best to work with your local representative to get your custom rate quote.

Get your custom rate quote. Call or apply today.

Considering Bridge Financing

When to Use a Bridge Loan

Is a bridge loan the right option for you? Consider applying for a bridge loan if:

You Need Funds for a Down Payment - Access money for a down payment before selling your current home
You Want to Avoid Contingency - Make an offer on a new home without having to sell your current home first.
You Need Time - Relax knowing you have additional time to sell your current home

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