When you are selling your current home and buying a new one there are a lot of moving parts in order to get both deals closed. Ideally they could close a day or two prior to the purchase. However, things don't always go that way. This does not mean you can't make it work.
You may be able to close your purchase before your sale, you will just have to arrange it with your lender. In this situation, lenders will often offer clients what is referred to as "bridge financing". This means the lender will lend the client an additional sum of money for the period between the closing of the purchase, and the closing of the sale. This is a short term loan and the total amount of the bridge financing will be paid out by your lawyer out of the proceeds from the sale of your current home on closing day. This allows clients the flexibility to find a perfect home without the strict time constraints of trying to close both deals almost simultaneously.
For more information about bridge financing from the major banks, here are some links to their information pages on the subject:
By: Briana C. O’Grady, J.D. – Associate Lawyer
If you have general questions about buying, selling or refinancing your home you can contact us. We offer a flat fee consultation service. There is no commitment. You can come in to chat and ask questions. We can offer some advice about what your options might be.
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