Navigating the intricate dance of selling your old home while securing your new dream house in Oklahoma can be a daunting task. The balance of timing and funds becomes even more precarious when faced with a competitive housing market where inventory is scarce and prices seem to keep climbing. For many, it feels like the only path is to sell, move into a temporary place, and then hunt for a new home — a process that is both costly and stressful. But what if you could seamlessly transition from your current home to the next? Enter the bridge loan, a financial tool designed to bridge this very gap. As a short-term financing solution, bridge loans empower you to leap ahead to purchase your new Oklahoma home before saying goodbye to your old one, helping you keep all the pieces in place without the interim shuffle. Imagine you’ve found the perfect new home in Oklahoma, but your current one hasn’t sold yet. A bridge loan swoops in as your financial lifeline. In simple terms, it’s a short-term loan that uses the equity in your existing home to help finance the new purchase. Think of it as a stopgap that gives you the cash needed for a down payment and other immediate expenses linked to your new home acquisition. This financial bridge carries you over the gap between buying your new property and selling your old one. Generally, bridge loans have a lifespan ranging from six months to a year, and while they may come with higher interest rates due to their temporary nature, they offer you the agility to move on your terms. Imagine you’ve stumbled upon an Oklahoma house that checks all your home shopping boxes. But there’s a hitch: your current home is still waiting for the right buyer. A bridge loan offers you a way to move forward. By tapping into the equity of your unsold home, you can secure the funds needed for the down payment and closing costs of your new abode. In many cases, the financial institution where you’re seeking a mortgage for your new Oklahoma home will manage your bridge loan as well. They’ll typically expect your home to be actively seeking its new owner in the market and offer the bridge loan with a 6- to 12-month term. Your lender will take a close look at your debt-to-income ratio (DTI) — an equation that takes into account the payments from your current mortgage loan, your new payment on the property you’re purchasing, and the interest-only payment on the bridge loan you are requesting. But if your old house is on the brink of a sale, with a buyer who has secured loan approval, the lender might decide to consider only your new mortgage payment in their calculations. Lenders want to be confident that you can make the payments on both properties in the event that your home does not sell right away. Securing a bridge loan in Oklahoma can unlock several advantages that streamline the transition between selling your old home and settling into your new one:What is a bridge loan, in simple words?
How does a bridge loan work in Oklahoma?
What are the benefits of a bridge loan in Oklahoma?
