The financial market is filled with numerous types of loans. Take time to learn the advantages and disadvantages of Arizona Bridge Loans before you go any further.
The world of financing is filled with numerous types of funding ventures, conventional bank and mortgage loans, private loans, revolving money accounts and that is just to name a few. Confused? Most people are, but we can lend you a helping hand in understanding this particular kind of funding. Here are the basics involving these particular loans and why you might want to consider this route in your quest for financing.
An Arizona Bridge Loan is normally taken out by an individual who needs funding for the difference between a cost of a new home and the money he/she will receive from the sale of their present home in the event that the closing has not occurred before that time.
Do you wish that you could close while your current property is still on the market? Providing conditions are met, these loans can entitle a seller to go ahead and purchase the desired new property before an existing property is sold.
Sometimes an Arizona Bridge Loan allows a few months that free you up of any payments on the new home, something most buyers find highly desirable.
While a home equity loan is less expensive than these types, some lenders will not make an equity loan if the home is currently on the market.
The contingency to sell (meaning that the buyer’s first home must sell before the second home can be purchased) can be removed. The purchase of the new property can be forwarded if the buyer has made a contingent offer and the seller issues a notice to perform. This avoids a long drawn-out escrow process and the possible discovery that the seller has no intention of completing the sale. California is the only state that legally requires an action like this, but it is used in other states as well.
What should I do in order to know if this type of loan is the one I should make?
Be wary of moving too fast, however, there are other things to consider when taking out an Arizona Bridge Loan. First, they are much more expensive than most standard loans. Secondly, the purchaser must meet the qualifications set by a lender to own both homes and requirements are normally pretty strict for this.
Decide if this particular loan is the best kind for your situation and find a lender that works for you and your needs.
Other than-standard loans are not right for everyone—do your homework and find out what pitfalls there are in this type funding. Working without all the facts in this instance can often be costly and time consuming, two things you are trying to avoid by going this route. Get out there, take in all the things you need to consider and find the best thing for you!
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.