When it comes to buying and selling a home, timing can be everything. But sometimes, when you are trying to buy and sell a home at the same time, that timing doesn’t always work out. You may find your new dream home or need to relocate in a hurry. But if all of your equity remains tied up in your existing home, which you have yet to sell, you may not have the cash you need to make an offer, provide a down payment, or make initial mortgage payments.
It is a common scenario, and one your agent should be prepared to address. At Compass, we provide a simple, reliable solution that can get you into the Chicago home you want while you’re trying to sell the home you have: Compass Bridge Loan Services.
Definition of a Bridge Loan
As the name implies, a bridge loan bridges the gap between buying a new home and selling an existing one. It is a short-term loan that uses the equity from your current home to provide you with the funds you need to make an offer on a new one. With a bridge loan, you have the freedom to move on your own terms and secure a new house when you need to, without having to wait for your old home to sell.
Additionally, a bridge loan can allow you to move out of your house before it undergoes any renovation or repair work needed to facilitate its sale, sparing you from the inconvenience and disruption involved if you were still living there. For instance, if you’re using Compass Concierge to help sell your home faster and for more money, you can also use a bridge loan to purchase your new home while your current home is being prepared to list.
How Does a Bridge Loan Work?
If you are interested in securing a bridge loan, you can work with your lender of choice to qualify and obtain one. Your lender will determine the applicable rates and fees on your proposed loan. Compass Bridge Loan Services has identified and works closely with lenders that offer competitive rates and dedicated service for our clients. Better.com and Freedom Mortgage are industry-leading lenders who provide short-term financing and are a part of Compass Bridge Loan Services.
Once you get pre-approved for a bridge loan, you can make an offer on a new home with confidence and without the anxiety or pressure involved if you otherwise would have had to sell your old house first. Once you do sell your existing home, the proceeds from the sale will be used to pay off your outstanding bridge loan balance.
Compass Bridge Loan Mortgages
To make bridge loans even more accessible and affordable, we offer qualifying clients Compass Bridge Loan Advance.
When you work with a Z Chicago – Compass agent to sell your current home, you can get up to six months of your bridge loan payments and other associated costs fronted — an exclusive offering for Compass clients, regardless of the lender you use.
Compass Bridge Loan Advance has a 0% APR for the life of the loan and has no additional application or closing fees. The advance can equal up to six months of monthly payments and eligible closing costs incurred from the bridge loan. Eligible closing costs include: (1) the dollar value of any points paid up front, (2) origination or application fees where applicable, and (3) appraisal fees.
If you need to move into a new home faster than a buyer moves into your old one, Compass Bridge Loan Solutions and Compass Bridge Loan Advance offer an ideal solution. Please contact us to learn more about how we can help you bridge the gap.