Home Buying in Lancaster>Question Details

author09, Both Buyer and Seller in Lancaster, PA

We are planning on looking, and want to investigate a "bridge loan" - any advice?

Asked by author09, Lancaster, PA Tue Jan 18, 2011

we need to buy a new home first, then sell our home...we have pets; and too afraid they will be accidentally let out during showings; also realize home will show better when pets (and evidence) not there; and can remove some furniture; etc. to show house better.

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Ryan Dodson’s answer
In my opinion, getting a bridge loan is not the answer to your problem. In addition, there are few investors willing to offer bridge loans. Last of all, you would still have to qualify for your new loan, while counting your current mortgage and the bridge loan in your debt ratio. It would be cheaper and easier to have your neighbors or any one of these helpful realtors watch your pets...

Thanks and good luck,
Ryan Dodson
Mortgage Loan Originator
NMLS MLO ID# 145408
E Mortgage Management, LLC
1768 Oregon Pike
Lancaster PA 17601
Mobile: 717-475-0195
2 votes Thank Flag Link Tue Jan 18, 2011
The pets should not be the reason to take on the risk of an extra loan to buy a house, before you sold yours.
To guarantee that you sell your house quickly it needs to be priced right and your house needs to be in excellent condition.Make sure that you can handle the financial situation when you sold your house at a realistic price and even a discount. Looking at a time frame of 2-6 month. If the mortgage market changes, what is likely ,the situation might change a lot and you might be stuck with your old house for years..
I sold several houses this year in a week, based on doing the right things .All these owners had pets.
Call me, if you want more help.
1 vote Thank Flag Link Tue Jan 18, 2011
speak to several lenders...see what works...its carrying to properties at once...if you qualify, go for it ! especially having so many pets, it would be better to maybe vacate the property and have it fully cleaned/updates/painted
0 votes Thank Flag Link Sat Mar 5, 2011
I hesitate to add to the reply's you are receiving but thought this may cut through some of the clutter and help you move forward. It is a great time to start preparing for your next move and I think you’re on the right track.

I’d recommend you call Deb Dupler, at Union National Bank at 367-9652, after meeting with a Realtor. Union National’s program used to go to 90% of the listed price, depending on your credit score with a 1 point fee + $500....but you’ll have to see if that still stands. They do a great job with there program, which gives us 6 months to sell your home with the option to extend it for another 6 months if necessary, for a small fee.

They will need us to do a market analysis for them to determine a final loan amount and you'll benefit from discussing what may need to be done in order to get your home ready to sell. A good agent will help you understand what buyers in your price range are looking for, what improvements may be worthwhile, the benefits of staging, show you their marketing timeline and the rest of their arsenal they will use to help you succeed.

Remember, ultimately you’re picking a Realtor that you that has a reputation for honesty with insight into the current economy and how that may impact the marketing of your home. A Bridge Loan product is just a part of a comprehensive marketing strategy for your property; it may or may not be the best option for your family. If you get one part of the marketing plan wrong, it may end of costing you time, frustration and money.

If you’d like some additional thoughts or insight, feel free to call me directly at 717-371-8012, email us anytime at Mark@JacobyGroup.com or visit our website at http://www.JacobyGroup.com

Our team is here to help if you need some more direction.

Mark E. Jacoby-REALTOR®, ABR , Team Leader
The Mark Jacoby Group
Coldwell Banker Select Professionals
1000 North Prince Street
Lancaster, PA 17603
717-735-6291 direct
717-735-8400 office
Mark@JacobyGroup.com
Web Reference: http://www.JacobyGroup.com
0 votes Thank Flag Link Tue Jan 18, 2011
I am half way through the process you just described, for the exact same reason.
A bridge loan can be an excellent way to purchase a new home prior to selling your present one. It would allow you to reach the goals you describe and stage your present home for future sale.
The down side to a bridge loan is that you must financially qualify to own both homes. If you have a mortgage on your current home you would need to be able to make payments on your current mortgage plus the bridge loan payments on the new one. Convenience comes at a price. It in the end it may be well worth it.
0 votes Thank Flag Link Tue Jan 18, 2011
Bridge loans are great, but you should call a realtor and find out how long similar homes in your area are taking to sell - ask yourself if you can afford to pay two loans for that amount of time or longer.

It is always better to show a home that is not cluttered and free of pet odors. I suggest you take your pets out while the home is being shown (if they are small pets like hamsters, lizards etc., you could have someone watch them until your home is sold). Get rid of unwanted furniture and knick knacks. It will be easier to dispose of them now rather than later.

If you vacate the home it may have a negative effect, as buyers may assume you are in duress, which could result in said buyer bidding a lower offer.
0 votes Thank Flag Link Tue Jan 18, 2011
The most important thing to do first is contact a lender to find out if you qualify for a bridge loan, and what you qualify for. At that time, you can look at the costs involved to see if a bridge loan is the way to go for you. Also, contacting a Realtor for advice on the sale of your home, such as what needs to be done before you list it, what your home is worth in today's market, and how long it will take to sell in the current market, would all be very helpful to you in making your decision. It is best to get this valuable information up front to avoid any problems moving forward with your new home purchase.
If I can be any further asistance to you, I can be reached at (717) 615-0430, call or text! You may also send me an e-mail at debra@youseshouses.com
Regards,

Debra Youse
Web Reference: http://www.youseshouses.com
0 votes Thank Flag Link Tue Jan 18, 2011
Bridge loans can be a great thing but really know the market on the home you are selling. It is a very risky move in a tough market. But if you have lots of funds in reserve and can handler the payment it could be a good option for you. Find a good loan officer with experience with these and they can walk you through your choices.
0 votes Thank Flag Link Tue Jan 18, 2011
A bridge loan would be an option for you, but most of the time the fees are much higher than a line of credit or any other option. I would suggest you speak with Ken @ Fairway independent mortgage corp. His email is kenp@fairwaymc.com.

Depending on your equity position buying without selling can be dangerous in this market. The typical way to do it is to put the contingency on your selling side. So.....you get offers contingent on finding a home. Call me to discuss. Most buyers are willing to wait a little while if they really love your house.

Keep in mind, you're going to have plenty of notice for showings and can always take them with you. There are plenty of options for you. I deal with this issue often.
0 votes Thank Flag Link Tue Jan 18, 2011
What type of pets do you have? Many home owner will purchase a nice size cage for them ONLY have them in there if they don't have a home office for showings. AND if showings on weekends take them for a walk then an agent shows the property.

Bridge loans are much of past

Many lenders MIGHT CONSIDER you approval purchase a home without a bridge loan .

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Jan 18, 2011
Hi!

I, too, suggest that you contact your lender for advice on a bridge loan, or let me know and I can give you some information regarding some reputable lenders in the area.

Also, here is some information regarding bridge loans...Bridge loans are temporary loans that bridge the gap between the sales price of a new home and a home buyer's new mortgage, in the event the buyer's home has not yet sold. The bridge loan is secured to the buyer's existing home. The funds from the bridge loan are then used as a down payment on the move-up home. Each lender has their own guidelines on how they finance bridge loans.

I am a full-time licensed Realtor and can help you to buy and sell...please let me know if I can be of assistance!

Best regards,
Kelly Trout
Prudential Homesale Services Group
150 North Pointe Blvd.
Lancaster, PA 17602
(717) 201-0808 cell
(717) 560-9100 office
ktrout@prudentialhomesale.com
Web Reference: http://www.kellytellme.com
0 votes Thank Flag Link Tue Jan 18, 2011
Great questions, speaking to a lender will guide you with your different options of loans. It's important to find out if you qualify for for a bridge loan first, if so, making sure it is in your budget to swing both homes at the same time is improtant, especially in today's market where homes can take longer to sell.

There are many opetions you can do with your pets and it's advisable to speak to a realtor about those. Many families show with their pets at home, but I understand your concerns.

"Staging your home" is also very important in today's competing market, buyers are very selective in choosing homes & every little extra your can do now will benefit your sale. Removing all the furniture may not be the best option, examining the many different scenarios is important.

Good Luck
0 votes Thank Flag Link Tue Jan 18, 2011
Your home will sell best if it is furnished and there are not pets or evidence. (it looks more inviting and like home with furnishings then completely empty) My advice would be to talk to your lender, they will help you to know what you can afford to do, and the regulations/qualifications for a "bridge loan".
0 votes Thank Flag Link Tue Jan 18, 2011
Hello,

I have lots of advice for you! First, most lenders will do bridge loans and you pay on the interest only, so typically amounts are not as high as you would think. I'd be glad to give you names and numbers of lenders.

Sounds like you have a good plan. I suggest that you have a good Realtor (that would be me), help guide you through this process.

Have a great day!
0 votes Thank Flag Link Tue Jan 18, 2011
Your concern is a valid one...it would be best to chat about it offline as the complexities can be a bit much for typing. Rest assured it is possible with some guidance. Feel free to give me a call at (717) 577-3251

Sincerely,

Jeremy Ganse
RE/MAX Associates of Lancaster
(717) 577-3251 (direct)
0 votes Thank Flag Link Tue Jan 18, 2011
Hello, Very expensive and think their may be other possibilites. Consulting with a Real Estate Professional, Attorney etc. Good luck, Allan
0 votes Thank Flag Link Tue Jan 18, 2011
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