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[B890]Bridge Loans For Homes

by Dave Lewis, Dav

From Here to There

You have two basic options when you are considering selling one home to move to another. The first option is to sell your home, make sure it closes and then find a new one. This is by far the safest option.

The second option is to buy and sell at the same time. Typically, you try to close on your sale around the time you close on the purchase. Theoretically, this allows you to move seamlessly from one home to the next. This is an option rife with potential problems. What happens if there are problems with the sale of your home such as escrow issues or the buyer failing to get a loan? Suddenly, you are looking at being the owner of two homes. Disaster has struck since you're undoubtedly using proceeds from the sale of your old home to fund the new purchase. With no sale, you have no funds and sleepless nights follow.

Bridge loans are often touted as a solution for this problem. In theory, a lender will provide you with a loan to cover the gap in time between the sale and purchase of the two homes. While bridge loans do accomplish this, they should be considered a last resort for a few reasons.

First, bridge loans are obscenely expensive. You're in a tight spot and the lender knows it. Points and interest rates are going to be shocking. The lender knows there is a higher chance you will default on the loan, so you can expect to pay for the risk up front.

The second problem with bridge loans concerns your old home. Inevitably, you will anticipate a fairly quick sale of your home, but what if it doesn't happen? Suddenly, you are making payments on two homes. Few people can afford to make such payments and you can quickly run out of cash.

Financing a move from one home to a new one can be a tricky process. Make sure you put a lot of thought into it or you could be in for a very bad surprise.

Many a times a company is approved for a loan through its bank, or financial institution, but the loan doesn't close for four to six months. During this time the company can take the help of a short-term commercial bridge loans, which can be repaid when the senior loan closes. Commercial Bridge loans can help the company to meet their financial needs and remain stable.

Are you in a process of finding capital for your new business or looking for your business expansion? By now, you must have found that arranging finance for a company can be time consuming, stressful and equally frustrating. However a little bit of planning and preparation before hand will save you lots of disappointment and aggravation. Like any partnership, business which is what obtaining commercial bridge loans are, the partners want to guarantee you have researched your opinions and know what exactly you require before coming to them for commercial business loans.

There are number of ways to generate a cash flow for your business. Hence remember that not all may be right for you. Suppose you business is starting point or small you may not be eligible for a commercial bridge loan.

You can avail a commercial bridge loan for any purpose. This includes the capital for commercial property or equipment, restructuring debt or for working capital. The terms for this type of commercial bridge loan are that the loan is for 12 months or less and that there is a proposed exit strategy.

The following list can help you identify the types of information the banker will want from your end when you apply for a commercial loan.

? Three years income tax and financial statements ? Year to date profit and balance sheep statement ? Your Performa for the next 12 months ? Length of the loan ? Federal and state tax information ? Personal finance statements ? Your collateral sheet ? Well-written business plan

Obtaining a commercial bridge loan can be a bit difficult especially when you are unaware of the correct entities that provide such funding. Today one can find numerous lenders and private investors who assist businesses with a Commercial bridge loan. You can avail funds anywhere around $1,00,000 to $10,00,000. Its all about selecting the right loan resource to meet your loan needs.

Tips that can help you help you select a right business loan lender

Commercial lenders are fussy. So just relax even if your loan gets down, simply go to the next four cheapest commercial loan lenders on the list and apply with a simple mouse click. There are lots of ?A? paper lenders; ?B? paper lenders and easy ?C? paper lenders. Make sure that you are dealing with dedicated and pre-approved lenders with knowledge and decision making ability.

Copyright 2006 Darren Dunner

Article Source : Pg. 163

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Both Dave Lewis & Darren Dunner are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Dave Lewis has sinced written about articles on various topics from Finances, Mortgage Insurance and Mortgage. . Dave Lewis's top article generates over 18100 views. Bookmark Dave Lewis to your Favourites.

Darren Dunner has sinced written about articles on various topics from Credit Home Loan, Family and Mortgage. Darren Dunner is the writer of this article. For more information about the subject, kindly visit http://www.iloanresource.com. Darren Dunner's top article generates over 12100 views. Bookmark Darren Dunner to your Favourites.