It can be a daunting enough task to pack up your memories and sell your home. Now add purchasing a new home to that mix. A big concern for many people is what to do if their closing dates don’t match. You’re concerned that you might be stuck with two mortgages, or if the bank will even approve you in such a situation. If there is a large space between dates will you be homeless?
Most lenders are aware of such situations when your closing dates do not match and you need to pay two mortgages. They offer something called bridge financing. This is a special loan that allows you to go ahead and purchase a property with an earlier closing date. When your current property closes the bridge financing ends and, if required, your new mortgage begins on your new home. If your home has a later closing date your Realtor may be able to help you find a short term rental.
Often times contracts can be negotiated so closing dates match. If that’s not possible, don’t worry. There are alternatives for you. Thanks for reading!
By Patrick Murray Join me on Google+