If you want to sell your current property and purchase your next dream home, you might wonder whether the closing dates need to be on the same day. You might even be worried that you’ll lose a property if the closing dates overlap, or you’ll be put out on the street if the dates are far apart!
For the most part, these concerns are unfounded. Thousands of properties change hands daily, and everything usually works out just fine. It’s amazing how often closing dates 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.” A special loan allows you to purchase the property with an earlier closing date. When your current property closes, the bridge financing ends and your new mortgage – if you need one – begins on the new home.
Alternatively, if the home you want has a later closing date, we will explore options, such as a short-term rental.
Have questions? Contact us today - we are here to help!
Posted by Paul Lamba on
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