Pros and Cons of Borrowing a Real Estate Bridge Loan
A lot of people wonder if they can borrow what’s called a real estate bridge loan and whether or not that would work for them. Before you borrow, it’s important to know the pros and cons of real estate bridge loans. The Pros of Bridge Loans Faster Turnaround - Usually the application process for a real estate bridge loan is a lot shorter than other types of loans Flexible - Getting approved for a bridge loan can give you funds to close on a new home without having to sell your current home. That means that if you find a home you love, or you find a great deal, then you won’t have to spend time selling the one you already own and can make offers quickly. Less Hassle - Typically you can get a Bridge Loan can simplify the buying of a property. The Cons of a Bridge Loan Higher Rates - With flexibility and speed, come higher rates. Since Bridge Loans are for a shorter time period, the rates are higher to compensate the lenders for that. Origination Fees - Lenders or Brokers may typic