3 Signs that You Should Consider Applying for a Bridge Loan

Buying property is always a serious financial decision. It involves a huge sum of money, so you should always be prepared before making that decision to purchase. If you have the funds you need, then buying a new property would not be a problem. If you have an old home you’re planning to sell, it can give you the money you need to buy your new home.

But selling that old home takes time. If you want to purchase the new property right away, you can approach local money lenders and apply for a bridge loan. Here are three good reasons to get this kind of loan.

Your old property is still waiting to be sold

This is exactly the reason bridge loans were created – to fill the gap between selling your old home and buying a new one. If you want to use the money you get from the sale of your old property to buy the new one, you normally have to wait for the old one to be sold first. That means you can’t buy the new property until the old one is sold.

Bridge loans provide an alternative. This way, you can secure the funds you need to make the purchase of the new property while waiting for the sale of the old one. Once your old property is sold, you can then use that money to pay back the loan.

You want to purchase a new property right away

Sometimes, buying a new home cannot wait. If you do, a buyer with funds ready can beat you to your dream home. If you don’t have enough to put down a payment yet, a bridge loan can help you if you have another property you want to sell.

Waiting for the sale of the old property can take some time. When you take out a bridge loan, you can buy that new home right away, even if you’re still looking for a buyer for your old home. You don’t have to wait a long time for your old home to be sold.

You don’t have another source of funds

If you have money ready to purchase a new home, then you can buy it at any time. But if you lack that source of extra funds, that’s when a bridge loan can come in. The loan helps you secure the money you need to purchase the new property immediately.

Selling your old property can take time and effort. You may even have to arrange for repairs and renovation of the old place to make it more appealing to buyers. Not to mention you have to list your property for sale and find a buyer with a good source of funds and a healthy credit score. 

Waiting for the sale can take too long. With a bridge loan, you can get your new home as quickly as possible while waiting for a buyer for your old home.

Conclusion

Bridge loans work well to help you purchase a new home while your old home is waiting to be sold. These loans provide a much needed helping hand if you are considering buying any property. 
Since bridge loans involve large amounts of money, it’s best to approach a known lender in Singapore like 111 Credit. With this, you can be sure that the lender will really be a helping hand for you to get your dream home.