Today, 65.9% of American homes are owned by their inhabitants. If you’ve bought a house before, then you know the struggles of pulling together money to become one of the proud ranks.
But there comes a time when you may have to leave your property for a different one, and it can be even more challenging to get money together. Without a home sale first, how can you buy a new house, after all? The answer is with a bridge loan.
Keep reading to see how you can pick the best bridge loan lenders of 2024.
Check With Local Banks and Credit Unions
You might think that the internet is a convenient place to look for lenders, and that’s true. You should utilize search engines to find ones with good reputations and customer reviews.
However, you can take it a step further and go local. Your community’s financial institutions might offer bridge loans, so look around and combine online and offline sources.
Ask for Recommendations
Reach out to real estate agents, investors, or friends who have experience with bridge loans. They may be able to recommend reputable lenders based on their own experiences.
On the other hand, they might be able to tell you who to stay away from too. Unfortunately, not everyone offers fantastic loan terms and rates, and you don’t want to be caught out with a bad deal.
Compare Loan Terms and Rates
On that topic, request loan quotes from multiple lenders and compare their terms, interest rates, fees, and repayment terms. Consider the total cost of the loan, including fees and interest rates.
If you require special terms, then read the small print carefully. For example, if you want to withdraw from 401k and IRA without penalties, check your bridge loan options for this wording.
Evaluate Reputation and Stability
Look for lenders with a solid reputation and a history of providing reliable bridge loans.
In addition to checking online reviews and ratings, you should also ensure that the lender is licensed to operate in your state. They should comply with relevant regulations too.
Accreditation from industry organizations can also be a positive sign. Not only does this mean they’re committed to exemplary service, but it shows they’re credible as well.
Review the Application Process
When you’ve narrowed down your choices, consider the ease and convenience of the application process. Choose a lender that offers a streamlined application process with minimal paperwork and quick approval times.
Time is of the essence, and you don’t want to miss out on buying your dream home because the money didn’t come in fast enough.
Choose From the Best Bridge Loan Lenders
By carefully considering the above factors, you’ll be able to easily sift through and find the best bridge loan lenders.
In addition to doing online and offline research, ask your social network for suggestions. And if all else fails, consult with a financial advisor or real estate attorney to help you evaluate your loan options.
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