How to Buy a Home BEFORE You Sell Your Current Home

How to Buy a Home BEFORE You Sell Your Current Home

  • Timothy Farnham
  • 04/14/22

Many homeowners are in a situation where their current home doesn't suit their needs anymore.  It could be because they outgrew their current home, need to downsize, or just be in a better location.  However, many are hesitant to sell because they don't want to sell their current home before they buy a new one because they don't know how long it will take to get an accepted offer on their new home. This leaves them feeling hopeless, frustrated, and living in a home that does not suit their needs as it once did.

You don't want to be the person who's forced to live in limbo for months on end, do you? 

Black Label Real Estate can help you buy your new home before selling your current home. We'll work with you to create a plan that fits your needs and helps you get the most out of your current and future homes.

At Black Label Real Estate, we are always looking for new and innovative products that can help our clients. We have partnered with several institutions that can now offer a product called a "Bridge Loan."  A Bridge Loan helps homeowners buy their next home before selling their current home. The Bridge Loan allows our clients to tap into the equity in their current home and use it as a down payment on their new home. This allows our clients to avoid the hassle and expense of selling their current home before buying their new home. Bridge Loans are a great option for those who are looking to move quickly or who need to sell their current home in a short period of time. If you have any questions about Bridge Loans or any of our other products, please contact us today. We would be happy to help you find the right financing.

In order to understand how a bridge loan works, it is first necessary to understand what a bridge loan is. A bridge loan is a type of short-term loan that is typically used to finance the purchase of a new home before the borrower's current home has sold. Since bridge loans are very short-term in the eyes of lenders, they usually come with higher interest rates than traditional mortgages, by about 2%. However, since the loan it is only carried for a few months, the cost of the loan is usually covered by the appreciation of the home being sold AND the appreciation of the new home.

San Francisco has some of the highest equity appreciation in the US for housing. Appreciation rates are projected to continue to rise in 2022, despite the mortgage rates normalizing from all-time lows.

So, if you're thinking of selling your home but are worried that you may not find your replacement home, it's a good idea to understand the power you have with your equity by using a bridge loan.

In order to qualify for a bridge loan, borrowers must typically have good credit and a large equity position in their home. This equity position offsets the payments on the new home until the previous home is sold.

Bridge loans can be a great way to buy a new home before selling your old one. If you’re interested in this option, contact a Black Label Real Estate agent today! We would be happy to answer any of your questions and help you get started on the process. Buying and selling a home can be stressful, but with our help, it doesn’t have to be. Thanks for reading!

 

Featured Bridge Loan Partners:

Stonecrest Financial

Golden Gate Lending Group

 

 

 

Become A Black Label Client

#ClientsFirst