When it’s time to move, many homeowners are faced with a conundrum. The cash that they’ll receive from the sale of their current home is necessary for the downpayment and financing of their new home. However, this creates a lag period where they must find temporary housing, which can be expensive and destabilizing.
One solution to this quandary is a bridge loan. If you are considering working with Compass during your real estate transactions, you’ll want to learn about Compass bridge loan services that are offered.
This offering is unique because of the ability to get upfront loan payments. This means the buyer won’t have any out-of-pocket costs for up to six months.
Is a bridge loan from Compass what you need to make your real estate transactions and relocation go smoothly? Let’s take a look at what you should know.
A bridge loan is a way to access immediate cash flow through a short-term loan. This can be used by individuals or companies who need to meet current obligations so that they can secure permanent financing.
One place where bridge loans become useful is in real estate. Having a large between selling one property and buying another can cause financing issues for borrowers. This offers some flexibility and allows individuals to go through with the purchase of their new home while they wait for their old home to sell.
(If you’re looking to borrow money, you can learn about ten common loan types here.)
Compass is a fast-growing real estate brokerage based in the U.S. Starting in 2019, they offer a Compass bridge loan program to help simplify the process of buying a new home for current homeowners.
When you work with Compass, they can help you team up with selected lenders that offer dedicated service for Compass clients and competitive rates.
One exclusive offering afforded to Compass clients is a bridge loan advance. This gives homebuyers up to six months of bridge loan payments upfront.
There are a number of circumstances where getting a bridge loan with the help of a company like Compass might make sense.
For example, if your money is currently tied up in the equity of your home, a bridge loan can help ensure that you secure funding for your next home. This can also be a solution for people who need to relocate within a specific timeframe and can’t wait for their current home to sell before moving. Lastly, bridge loans can also help you move faster if you’re planning on making improvements or renovations to your home.
It’s worth noting that Compass isn’t the direct lender for these loans, rather they offer Compass bridge loan services to help you team up with a bridge loan lender.
Are you looking for more loan resources? If so, be sure to check out our library of articles here!