We believe in empowering our clients to achieve their homeownership dreams with ease and confidence. That is why we're excited to introduce you to an innovative solution that can open doors to your new home even before selling your current one: the bridge loan.

This month in our Lender Corner, we'll shed light on how bridge loans work and how they can be your key to a smooth transition between homes.

What is a Bridge Loan?

A bridge loan serves as a financial bridge between the sale of your existing home and the purchase of a new one, eliminating the need to wait for your current property to sell before moving forward.

This invaluable tool allows you to seize the opportunity of securing your dream home without the stress and pressure of timing the sale perfectly. We partner with our very own Luminate Bank to make this as easy as possible and keep communication in-house, so you don’t have to worry about dealing with multiple parties.

How Does it Work?

So, how does a bridge loan work? Essentially, it's a short-term loan that provides you with the necessary funds to purchase your new home. The loan is secured by the equity in your current property, which serves as collateral. This means that instead of waiting for the sale proceeds from your current home, you can tap into its value to access the funds you need for your down payment and closing costs. Once your existing home sells, the bridge loan is repaid.

What Should I Do?

Don't let the fear of selling your current home before buying a new one hold you back from achieving your homeownership goals. Contact us today to learn more about how bridge loans can work for you.

We look forward to being a part of your homeownership journey!

Warm regards,

Liz Peter Mortgage Team

Luminate Home Loans