What Is A Bridge Loan?

Qualifications For A Fairfax Bridge Loan

One of the qualifications for obtaining a Fairfax bridge loan is that you must have some form of collateral, typically this is your home. If you were ever to stop making the payments on your loan the lender would be would have the power to seize your home so they are able to recoup their losses. You may need to have a minimum low credit score and a low debt-to-income ratio because bridge loans are often third or fourth mortgages.

Bridge loans are ideal for borrowers who are looking to purchase a new home without having sold their previous one. Normally, the loan will be taken out against the property that is currently owned. The buyer will have to prove their ability to be able to pay all of their financial obligations including their current debts and the addition of the bridge loan. These qualifications will be used to determine if you are eligible for a bridge loan.

Benefits Of A Bridge Loan

A bridge loan is a temporary loan that is taken out when a borrower has yet to sell their current home, but is looking to purchase a new one. This transition period can be financially draining, so bridge loans step in to alleviate some of the stress. This is often helpful when homeowners need to move quickly to purchase a new house, for fear of losing out on the property. The bridge loan provides you with funds that are able to support you until the original property is sold.

Burrowers of a bridge loan are usually offered two options to pay back the loan. They either have the option to pay it all back at once, typically when the house is sold, or they are offered a specific time frame that can be anywhere from six months to a year. If the property is not sold during that time, the burrower can ask for an extension. If you find yourself in the situation of owning two properties at once and are having financial difficulty supporting both, a bridge loan might be a great idea for you.

Seeking A Fairfax Mortgage Broker

When seeking a Fairfax mortgage broker you have to find one that you trust and can offer you the best deal based on your credit score. It is important to talk to multiple brokers to get a feel for their work ethic and to hear what they can offer you. You should meet with them in person and ask them about their application process, their fees, rates and point system. This is a good way for you to collect information from multiple brokers and be able to easily compare them. You should not instantly choose the broker that gives you the seemingly best deal, you should carefully look over what each broker has presented you in detail, so that you can determine which broker is best for you in the long run. Take your time when your seeking a mortgage broker, while you may need money quickly, it is better to take your time and find the right broker so that you can get the best deal.