Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Mark Waterman from Great Western Bank. Listen in, as Mark gives a brief explanation of bridge loans and how they can be beneficial to a homeowner who's looking to move. You can reach him at 605.627.0602 or Mark.Waterman@GreatWesternBank.com His office is located at 1302 6th St., Brookings SD 57006 or on the web at www.GreatWesternBank.com
Bridge Loans
- Oh yeah.
- Hey, good morning everybody. Shane here from the Brookings Home Team powered by Century 21. 8:15 again, Monday morning, a little chilly Monday morning. Hopefully it warms up here a little bit. We had some great weather last week for a little while. But it is 8:15, meaning that it's a Monday morning mortgage tip. And this morning this lucky guy here, Mark from Great Western has joined us to talk about today's tips. So what do you got for us today Mark?
- Well, I know we kinda discussed some things over the weekend and some possibilities of what I could talk about and to be completely honest, I forgot about it this morning so, wasn't prepared at all, and I don't really have much to talk about. Just kidding, April fools!
- April fools!
- What I did wanna talk about was bridge loans and kinda the pros and cons I guess. So with the bridge loan, you have, it's most common when you have a property that you already own and you want to buy a different property without making it contingent upon selling your existing home. So, the bridge loan can be a tool to give you money for the down payment on the new property. Okay? Generally in order to qualify though, it is a little more strict. You do have to have fairly substantial amount of equity in your current property. And then you have to be able to qualify with debt to income. Generally you have to have a higher credit score because potentially it could be a riskier type of loan. Getting people to qualify can be a challenge at times. It's not for everybody 'cause essentially what happens is, you have your first mortgage payment and then you have the bridge loan that you could be paying interest only on. Generally it's a six month loan. It can be extended if during the time you have an inside purchase agreement on your first house that you currently own. But then you could potentially be making mortgage payments on the house that you buy as well. So not for everybody. It is a little bit riskier. Shane probably could give you a lot more information and make you feel more comfortable about selling your first mortgage. I mean that is obviously our priority as well during the transaction. But it gives you flexibility to be able to buy. To buy your new home without having to close on the same date and having to rush. Or maybe a house came up and you completely weren't even, it wasn't even on your radar to sell your existing home but you didn't want to miss out on this opportunity. Or you wanna make your offer even stronger by removing that contingency. So it is an option. It's not for everybody. Like I said, it's higher requirements for qualifying but if you have any questions about it, give me a call and we can run through the scenario and your specific scenario that you have. And again, you the Brookings market is for the most part, I think moving fairly well but, you know, it would still be something that we'd consult with Shane to make sure that he's comfortable on moving your existing home as well.
- Yeah no, good information. I've had it come up a couple different times and I thought it was a good time to talk about it as we get into Spring and you do see homes come on and people aren't quite ready to sell theirs but they sometimes need to make it contingent upon the buying of another one. The bridge loan is a good resource or a good option to maybe have a temporary fix for that where we know your home will probably sell and you can get into the other home as well.
- Yup.
- It helps with offers too. It makes your offer look a little cleaner. If you can make it not contingent upon the sale of your house. And to be honest, you can get a little more negotiating power that way too, if you don't have to make it contingent upon upon selling your house. So good information Mark and like he said, there's a lot more detail to it, we just wanted to touch a little bit on the tip of the iceberg of that. So just to give you another option. Something else to think about if you're thinking about selling your home and want to buy another one. Get in touch with Mark here at Great Western. As always, his information's on the top, on the bottom, on the sides, wherever your device allows you to see that. Feel free to tag and share this with anybody else you feel would be interested in this video as well. And don't forget, we're on Podcasts now so, follow us on our Podcast with Google, Spotify, I know there's five or six different platforms we're on. So be sure to check that out too if you can't watch it here. All right, thanks Mark.
- Yeah, you bet. Thank you and hopefully nobody pulls an April fools prank on you today.
- I hope not. I'm sure it will though. Have a great Monday guys. We'll see you next week.
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