Here is a quick look at some additional loan options

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Buying a new home while selling your current one can be tricky. Bridge loans, traditional loans, and home sale contingencies each offer different solutions. Here’s a quick and easy guide to help you decide. And remember—always consult with your lender for more detailed info! 

A bridge loan is short-term financing (typically repaid within 4 months) that helps you buy a new home before selling your current one. Think of it as a way to "bridge" the gap between your old and new home!

How It Works:

• Uses Your Current Home as Collateral: Your old home backs the loan, giving you quick cash for a down payment.
• Potentially Higher Interest Rates: These loans are short-term, so lenders charge a bit more for the convenience.
• Supplementary Traditional Loan Option: If there isn’t enough equity in your home, you can combine a bridge loan with a traditional mortgage to cover the gap.

Pros:

• Buy before you sell—no waiting! Perfect if you’ve found your dream home but haven’t sold your current one yet.
• Avoid a home sale contingency, making your offer more attractive to sellers.
• Flexibility to move fast in competitive markets.

Cons:

• Higher interest rates than traditional loans (it’s the price of speed!).
• You’ll have two payments for a little while—but just until your old home sells.
• Requires good credit and enough equity in your current home.

A traditional mortgage is the go-to, long-term financing option for most buyers. Think of it as the steady and reliable choice.

Key Points:

• Lower Interest Rates: Great for saving money over time.
• Requires a Down Payment: Usually 5%-20% of the home’s price.

Pros:

• Ideal if you’re financially stable and don’t need to sell your current home first.
• Works well if you can qualify for two mortgages temporarily.
• Predictable and steady monthly payments for the long haul.

Cons:

• May require a bigger upfront down payment compared to bridge loans.
• If you’re relying on the sale of your current home for funds, you might face delays.

A home sale contingency means your offer to buy a new home depends on selling your current one first. It’s a safety net that keeps you from juggling too much at once.

Pros:

• Low financial risk—you’re not on the hook for the new home unless your current one sells.
• No need for a bridge loan or juggling two mortgages.
• Simpler if you’re in a less competitive market.

Cons:

• Sellers might not accept your offer, especially in hot markets where non-contingent offers are preferred.
• Adds a time constraint to your buying process, which can be stressful.
• You could lose out on your dream home if your current one doesn’t sell quickly due to a “kickout clause” that allows the seller to accept a better offer.

While we can not advise which loan option is best for you, we are here to inform you that there are multiple ways to achieve your goals. Each option has its pros and cons, so take a moment to consider what works best for your needs. Your lender should help you explore all your options and find the one that makes the most sense for your situation!