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Understanding Bridge Financing- How to Buy a New Home Before You Sell Your Current One

Jan 16, 2024 | Uncategorized

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One of the biggest challenges a homeowner can face when looking to upgrade or move is trying to sell their current home while buying another. If most of your net worth or equity is locked up in your current house, you will need to move it into cash to help fund the purchase of your new home. The alternative is to wait until your home is sold and you receive the funds before trying to buy a new one – but you could end up waiting for months.

The great news is that there are bridge financing options available to homeowners which can help to get things moving. Let’s take a look at how a bridge loan works and how it can help you to buy a new home before your sale is finalized.

So, are you interested in learning what it takes to become a successful house flipper? Read on to learn more about this fun and exciting way to invest in real estate.

How Does A Bridge Loan Work?

First, it is important to note that a bridge loan isn’t the same as your mortgage loan for your new home. Instead, when you take out bridge financing, you’ll borrow against the equity that you’ve built up in your current home. You’ll then be able to use these funds to help cover the costs involved with closing on your new house. Then, when you sell your old home, you’ll use part of the proceeds of that to pay off your bridge loan.

The main benefit you’ll get from this approach is a bit of extra time and flexibility in selling your home. Instead of having to accept a low offer or rush into a sale, you’ll have a bit of breathing room to take the best offer when the time is right.

Try To Avoid Making A Contingent Offer

Your bridge financing can also help you to make the winning bid and close on your new home faster. One piece of advice that some real estate agents and other experts have shared is to avoid making an offer on a new home that is contingent on selling your current home. This is especially true if you are buying in a hot real estate market where there are other buyers competing against you for the same home. If you’re already funded, you can submit an offer to buy the home as soon as the seller is ready.

If you are considering selling your home, be sure to contact us at (480) 582-5050 or email us at info@webuyhomescash.com so we can provide you with a Fair Cash Offer on your {Business Area} house.

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  • Michael G. SLC, UT

    We had made a move out west from North Carolina for business reasons, and we did not have time to finish some upgrades such as new carpet, fixing a small area of mold in one of the bathrooms, and some painting.  We had selected an investor in NC who advertised quick closings, all cash for as-is homes.  They backed out of the deal at the last minute, and we had a home under construction in Utah.


    We called We Buy Homes for Cash, and they were wonderful.  Blake, Mason and Bryan made the whole process smooth and stress free.  We were able to close in about two weeks.

    We are about to close on our new home in Utah.  This would not have been possible without their professional and personable service.  I highly recommend We Buy Homes for Cash.

  • Robbie Khalil

    I had been wanting to sell my house for several months but every realtor I talked to needed me to clean up my house and I have 30 years worth of stuff here.  I was not able to get rid of my stuff or pack it all away.  My home also needed some repairs like the roof and some plumbing stuff.  I called We Buy Homes Cash and the experience was amazing.  They gave me $2,000 up front so I could buy the moving supplies I needed to pack.  Then they let me stay in the house for 2 weeks after they closed.  This was so helpful.  Thank you so much Tyson and all the others that helped me make my move to Ohio possible.

  • David Moore

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