3 Things You Need to Know About an Arizona Bridge Mortgage

If you are trying to sell your home while simultaneously buying a new one, an Arizona bridge mortgage might be an option that you need to look into. A bridge mortgage is a short term loan that can help you purchase a new home while yours is still on the market. 

Selling a home while you still live there can be stressful. Many homeowners feel they do not have the option to buy a new home before they sell theirs because they are relying on the sale of their home to finance the down payment on a new home. If you find yourself in this situation you may want to evaluate the risks and benefits of an Arizona bridge mortgage.

A bridge mortgage, or bridge loan, is a short term loan that is designed to bridge the gap between an expense (like a new down payment) and expected income from the sale of your home. Bridge loans are quickly gaining popularity among borrowers because they are low risk and high reward. With an Arizona bridge mortgage you can borrow the down payment on a new home using the equity in the home you currently own. It is similar to a home equity loan but it can be taken out on a home that is actively on the market.

One of the key advantages of an Arizona bridge mortgage is that it allows you to move while your home is still on the market. This is ideal for families with kids whose homes may not show well, or can also be ideal if you need to move quickly for work. Once your home sells you use the proceeds to pay off your bridge loan.

What You Need to Know If You are Considering an Arizona Bridge Mortgage

If you are thinking about getting a bridge loan, there are a few things you need to know so that you can make an informed decisions. 

1. A bridge loan has higher interest rates. Short term financing like bridge loans are high risk loans for lenders, meaning you will pay more for them. However, many lenders offer grace periods of up to three months. If you can sell your home and pay off your loan in that amount of time you won't end up paying any interest. 

2. You have to have good credit. Not to get a bridge loan per say, but you will need to be able to qualify for both mortgages since you will own both homes, at least for a short time. 

3. There are fees. All in all, a bridge mortgage will end up costing about $2,000 for appraisals, lender fees, and closing costs. Keep this in mind when you are budgeting so you aren't caught off guard. 

Once you have evaluated the risks and benefits of an Arizona bridge mortgage, find an Arizona private lender to get the loan process started today.

Call our qualified staff at Level 4 Funding to get your bridge mortgage approved today! 

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Texas | 78701    

  

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

How to Evaluate the Risks and Benefits of an Arizona Bridge Loan

An Arizona bridge loan is gaining in popularity as a short term loan option. Like any loan, there are certain inherent risks and benefits. Knowing how to analyze your loan will help you decide if it is a good option for you.

A bridge loan can be the

missing piece of your home

buying puzzle.

Arizona bridge loans are short term loans used when a borrower who has not sold his current home wants to purchase a new home. These loans work to bridge the gap when the borrower plans to use proceeds from the original home as the down payment on his new home. The bridge loan is secured to the original home, the one that's on the market. The funds from that loan are used as the down payment for the mortgage on the new home. 

There are no strict guidelines when it comes to an Arizona bridge loan so credit score and debt to income ratio are not usually factors that will automatically disqualify you. This is good news for borrowers with less than stellar credit or who may have a high debt to income ratio once they purchase their new home. Instead, bridge loans are based on a few different factors, including how likely it is that you will sell your current home quickly, and whether or not you can make both mortgage payments for a short time if it becomes necessary. If you default on a bridge loan, the lender has recourse to get their money back using the property you have on the market because it is the one that secured the loan.

The Risks and Benefits of an Arizona Bridge Loan

There are several risks that are associated with bridge loans. Like any loan, they are not entirely safe and can lead to some negative consequences if you don’t fully evaluate their terms, conditions, and rates. First and foremost, an Arizona bridge loan had fees associated with it. Generally there is an administration fee of about $750, an appraisal feel (for your current home) of about $350. Once notary fees, wire fees, origination fees, and any other lender fees are added in, a bridge loan will end up costing the borrower about $2,000 to obtain. This may seem like a lot, but if is the difference between buying your dream home or losing out, many borrowers find that the fees are more than worth it. Especially since it is much easier to come up with two grand for a bridge loan than it is to find $20,000 for a down payment if your current home has not sold.

Another risk to an Arizona bridge loan is high interest rates. Most short term loans are inherently more risky for the lender. You will pay extra for that risk meaning you will have a higher interest rate. Interest rates fluctuate based on the prime rate and how much you need to borrow, but typically speaking the interest rate on bridge loans is usually higher than a traditional home mortgage. You can avoid paying high interest rates by selling your home quickly and paying back the loan as soon as possible.

Along with the risks, there are also several benefits to an Arizona bridge loan. Many loans offer terms that allow you to skip the first few months of payments. If you can sell your home during this time, you can avoid paying any interest at all on the loan. In addition, you can use extra proceeds from the loan to do remodel work on your new home and put your own personal stamp on it.

Also, bridge loans allow you to put your current home on the market quickly and without restrictions. Potential buyers will not need to schedule showings because the home will be vacant. A vacant home is easier to show and usually sells more quickly due to ease of access. You can also look into staging your home to give you an extra advantage. And without your family living there, it will be easier for new buyers to picture themselves living in the home.

Bridge loans are also usually fairly easy to qualify for and have flexible underwriting guidelines. This makes them an ideal loan for someone who needs cash for their new home fast.

Call an Arizona mortgage broker or private lender to get started on a bridge loan today.

Once you are settled in your new home, you will be happy that you chose to use an Arizona bridge loan to help you get cash fast and with little hassle.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Texas | 78701    

  

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

How to Save Money and Buy a House With an Arizona Bridge Loan

An Arizona bridge loan is a special type of loan that can help you buy a new home. It is important that you know your options and what the risks and benefits of a bridge loan are so that you can make an informed financial decision. 

An Arizona bridge loan is a specialized short term loan that can be useful for real estate transactions. It is a short term loan that allows you to use the equity in your current home as a down payment on a new home before your current home sells. As the name implies, an Arizona bridge loan is designed to “bridge” the gap by giving you funds for a down payment. The loan is paid back with the proceeds from you home sale.

A bridge loan can be very beneficial in many ways because it allows you to buy a new home and put yours on the market without any restrictions. When you are living in a home while you are trying to sell it, scheduling showings can be a nightmare, especially if you have pets or kids. It is also difficult to keep your home show ready and leave at a moment’s notice. Many buyers will also have trouble picturing themselves in your home while your stuff is there. A bridge loan can allow you buy another home while yours is still on the market by fronting you the down payment.

An additional benefit of a bridge loan is that it is relatively easy to qualify for. There is not a lot of paperwork and since many borrowers will have a high debt to income ratio because they own two homes for a short period of time, debt and credit scores are not as important as they are in traditional loans. However, keep in mind that you will still need to qualify for two mortgages so make sure all of your financial ducks are in a row. 

Important Things to Consider when Thinking About an Arizona Bridge Loan

If an Arizona bridge loan sounds like it might be a good option for you, it is important to know all of the risks and benefits and know the ins and outs of your loan terms. Make sure you are in the driver’s seat and in control of your loan at all times. Here are a few things to keep in mind.

1.       An Arizona bridge loan may have a high interest rate. Since a bridge loan is a short term loan and is secured by the sale of your current home, the lender is taking a fairly significant risk in extending you the credit. The more risky the loan, the higher the interest rate. Although interest rates do fluctuate, you can expect to pay more than the prime rate and your rate could climb as high as the double digits.

2.       You can avoid paying interest. Although the loan itself has a high interest rate, shopping around for the right loan can help you avoid paying any interest at all. Many bridge loans allow you to skip the first few months of payments. If you can sell your home during this time period, you can pay the loan back before any interest accrues.

3.       There will be fees. An Arizona bridge loan has several fees associated with it. You will pay an administration fee of about $750 and an appraisal fee on your current home to ensure it is worth what you need to sell it for. In addition, you will pay wire fees, origination fees, and points which will be dependent on the amount of your loan. When all is said and done you will probably end up paying about $2,000 to secure your bridge loan. For most borrowers this is well worth it to get them into their new home sooner rather than later. Also, keep in mind that the fees will vary depending on your lender so shop around.

If an Arizona bridge loan sounds like a good option for you, start looking at your options today!

An Arizona mortgage broker or private lender can help you get started on getting your bridge loan. Call our office today to schedule an appointment. You will be glad you did!

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Texas | 78701    

  

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

With A Bridge Mortgage, Arizona Buyers Can Move Before They Sell!

Selling a home while you still live there is less than ideal and often leads to frustration and accepting a low ball offer just to get it over with. There is a better way. With a bridge mortgage, Arizona sellers can buy a new home before their current home sells. 

Moving is stressful. Between packing up all of your belongings, deciding on a new neighborhood, finding a new school for your kids, and finding your next dream home, you have a lot on your plate. Add in needing to sell your current home and many sellers find themselves completely overwhelmed. This can lead many to accept a lower offer for their home out of frustration or the need to move quickly. Rather than losing money, with a bridge mortgage, Arizona buyers and sellers can purchase a new home before their current home sells. 

A bridge loan can help you make a down payment on your new home by giving you a short term loan for your down payment amount. A bridge mortgage Arizona is similar to a home equity loan in that it capitalizes on the equity built up in the home that you are selling. Unlike a home equity loan, you can take out a bridge loan on a home that you actively have on the market. 

How A Bridge Mortgage Arizona Works

If a bridge mortgage sounds like a good option for you, it is important to understand how it works. If you are selling your home and still owe $200,000 on your mortgage but your home is worth $250,000 you can use a bridge loan to borrow against the equity in your home. This will allow you to make a down payment on a new home before you sell your current home. Once your home sells, you use the proceeds from the sale to pay off your bridge loan.

There are a few risks with a bridge mortgage Arizona borrowers need to be aware of. Since a bridge loan is a short term loan, you will pay a higher interest rate than you would on a home equity loan or traditional mortgage. You can minimize this risk by selling your home quickly and paying off your bridge loan before any interest comes due. You can work with your lender to determine a grace period that would be long enough to avoid accumulating interest.

A second consideration with a bridge mortgage is that they are financed through a private lender. Most banks will not loan money on a home that is actively listed for sale so a private lender is a better option. There are many, many reputable private lenders but there are some that are not. Do your homework, check reviews, and ask family and friends for recommendations. Finally, make sure that your lender has a licensed mortgage broker because you know that he will play by the rules and keep your money safe.

Finally, keep in mind that while a bridge mortgage is a great way to finance your down payment, you still will need to get a mortgage on the property. Since you will own both properties for at least a short time, you will need to be able to qualify for two mortgages.

Stop waiting for your home to sell. With a bridge mortgage, Arizona sellers can buy their dream home today!

A bridge mortgage can be a great way to purchase the home of your dreams today! Learn more and apply for your bridge loan so you can stop living in limbo.

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Texas | 78701    

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

Make Your Dreams Come True With an Arizona Bridge Mortgage

If you dream of buying a new home, but need cash from the sale of your current home for your down payment, you may find that moving is just a dream. However, you can make that dream a reality with an Arizona bridge mortgage to help finance your down payment and move to a new home before your current home sells. 

If your home is on the market, you know that selling a house is stressful. Between keeping it clean and leaving at a moment's notice for showings, you may find that you barely even have time to look for a new home. Moving may seem like a pipe dream. However, with an Arizona bridge mortgage you can start looking for and even move into your new home before your current home sells.

If you qualify for both mortgages but have to use funds from your home sale for your down payment, then an Arizona bridge mortgage may be just what you need to move. A bridge mortgage is a specialized loan that you borrow against your current home, the one on the market. You borrow what you will need for the down payment on a new home. You purchase your new home using your bridge funds. Once your current home sells, you use those funds to pay back your Arizona bridge mortgage. So, basically a bridge mortgage helps bridge the gap between your current home selling and purchasing a new home.

If a bridge mortgage sounds like an ideal way to make your dreams come true, talk to an Arizona private lender about how to go about funding one. A bridge mortgage is a non-traditional loan so you can't get it from a bank. A bridge mortgage is similar to a home equity loan but it can be used for a home that is on the market (usually you can't take out a home equity loan using a home that you are selling as collateral).

When you are choosing a lender for your Arizona bridge mortgage, make sure that you pick a licensed mortgage broker. This will help protect your investment and ensure that the individual funding your loan has experience and knows what he's doing.

Don't let endless showings and waiting on your home to sell delay the purchase of your dream home! Find out about an Arizona bridge mortgage today!

Once you are settled in your new home, your old home will most likely sell more quickly and for top dollar. Don't delay your dreams any longer, find out about a bridge mortgage today!

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Texas | 78701    

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

How to Get a Bridge Loan Arizona Financial Experts Trust

According to many experts, you only need a few things to sell your house, a bridge loan, Arizona real estate agent, and a good price. If you are interested in learning more about how to make your home selling dreams come true, a bridge loan might be the right option for you and your family. 

Selling a home while you are still living in it can be a nightmare, especially if you have kids or pets. Keeping the home show worthy, leaving for each showing, and simultaneously looking for a new home to move into is enough to make anyone lose their mind. If you find yourself in this situation, you may think there is no other option. After all, even if you can qualify for two mortgages, most sellers rely on the sale of their current home to finance the down payment on the new home they are purchasing. 

If you need the proceeds from the sale of your current home to use as a down payment on a new home, there is an option that can help you move before you sell. You can get a bridge loan Arizona real estate experts recommend to finance your down payment. 

A bridge loan is exactly what it sounds like, it helps bridge the financial gap between selling your current home and needing a down payment for a new home. With a bridge loan, Arizona families can borrow the down payment for the new home using their home that is up for sale as collateral. Once your home sells you pay back your bridge loan. Usually this time frame is so short that many borrowers don't even end up paying interest on their bridge loan. 

With a bridge loan, Arizona borrowers benefit from being able to sell their home more quickly and with less hassle. A vacant home shows better than one that is filled with clutter and you don't have to worry about scheduling showings. You can be in your new home while your home is still on the market. 

3 Things you Need to Know About A Bridge Loan Arizona Home Sellers Use To Finance A Down Payment

A few things you should know about bridge loans before you apply. Firstly, you have to have fairly good credit and a pretty high income. Not for the bridge loan itself, but you have to be able to qualify for two mortgages because, for a short time, you will own both homes. There are ways around this using ARMs and hard money loans, so talk to your financial professional if you don't meet this criteria. 

Secondly, you need to know that you can't walk into a bank and request a bridge loan. A bridge loan is a specialized type of loan that is usually given by a private money lender. The closest thing a bank has to offer is a home equity loan but most banks won't give out this type of loan on a property that is for sale. Your best bet is to find a company for a bridge loan Arizona financial experts trust like the licensed brokers at Level 4 Funding. 

Finally, bridge loans are short term loans, meaning they have higher interest rates than traditional mortgages. However, talk to your loan officer about a longer grace period. Often, you end up selling your home before your grace period is over and don't even have to make a payment on your bridge loan. 

Once you have decided that a bridge loan Arizona is the right help for you, contact a private money lender to get the process started today!

Call our experts at Level 4 Funding to get your bridge loan financed today. Don't delay your move or make selling your home more stressful than it needs to be. With a bridge loan you can move today!

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:      (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Texas | 78701    

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.