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\n <\/div>\n \n Yes, You Can Buy Before You Sell. Why Move Twice?<\/h3>\n
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency<\/strong>.<\/p>\n \n A bridge loan in real estate is a short-term loan that helps you buy a new home while you\u2019re in the process of selling your current one. It gives you access to the equity in your existing home so you can cover a down payment and closing costs on your new purchase without waiting for your old house to sell.<\/p>\n Bridge loans tend to cost more than traditional mortgages, but they are designed to be fast and flexible, helping you move forward without as much financial stress.<\/p>\n Bridge loans are also sometimes referred to as:<\/p>\n A common situation in which a Las Vegas buyer might need a bridge loan is when the buyer has to buy their next home before selling their current one. The buyer would then use the equity from their old home to help cover the down payment<\/a> and closing costs<\/a> of the new purchase.<\/p>\n Typically, the lender handling your new mortgage will also manage your bridge loan. Lenders usually require that your current home is listed for sale and will offer a bridge loan for a term of six months to one year.<\/p>\n Your lender may calculate your debt-to-income ratio<\/a> to decide if you qualify. They might include payments from your existing mortgage, your new mortgage, and any interest-only payments on the bridge loan. If your old home is under contract and the buyer has final loan approval, the lender may only factor in your new mortgage payment.<\/p>\n Lenders want to be confident that you can handle payments on both homes if your sale doesn\u2019t happen immediately.<\/p>\n Borrowing a bridge loan has several benefits, such as positioning you as a more flexible homebuyer in Las Vegas.<\/p>\n These combined benefits can make a bridge loan a convenient option if you\u2019re tight on cash before selling your previous home, giving you the flexibility to repay the loan with your sale proceeds.<\/p>\n While a bridge loan can increase your flexibility and ease some of the stress of buying and selling, there are some drawbacks to consider.<\/p>\n Lenders will look at your monthly income and how much equity you have in your current home when deciding how much you can borrow. If you owe more than 80% of your home\u2019s value, you might not qualify.<\/p>\n A bridge loan isn\u2019t a blanket solution for all real estate transactions, but it can ease the stress of transitioning between an old home and a new one for some sellers.<\/p>\n Some examples of when a bridge loan might be a fitting solution include:<\/p>\n Explore the ins and outs of bridge loans in Las Vegas: benefits, drawbacks, costs, providers, and modern alternatives. Learn how you can \u2018Buy Before You Sell.\u2019<\/p>\n","protected":false},"author":358,"featured_media":56756,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[823,192,771,629],"tags":[767],"class_list":["post-56755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bridge-loans","category-for-buyers","category-buying-a-house-while-selling","category-home-financing","tag-what-is-a-bridge-loan"],"acf":[],"yoast_head":"\nWhat is a bridge loan, in simple words?<\/h2>\n
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How does a bridge loan work in Las Vegas?<\/h2>\n
What are the benefits of a bridge loan in Las Vegas?<\/h2>\n
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What are the drawbacks of a bridge loan?<\/h2>\n
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When is a bridge loan a good solution?<\/h2>\n
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