A seller who cannot sell his or her home in time to use the proceeds to purchase a new house might want to consider a bridge "loan.â€� Doing so necessitates using the existing home as collateral and taking out the bridge loan as the down payment for the new house until the old house is sold. Thus, a bridge loan is a temporary loan that bridges the gap between the sales price of a new home and a buyer’s new mortgage when the old house has not yet sold. Of course, it’s helpful to sell one house before purchasing another, but things don’t always work out that way. An experienced real estate agent can find ways to make things work.

CENTURY 21 SEXTON & DONOHUE hopes you found this topic to be both interesting and formative. Should you require financing advice, we can suggest some options. We will walk you through the steps when selling and purchasing property. To learn more, reach us today at (781) 665-6660. We’re here for you. The office is conveniently located at 29 Essex St., just across the street from Shaw’s. We are "A Team Effort�. You will benefit from our real estate knowledge and experience.

HINT: If a bridge loan is not an option, taking a temporary loan from a 401(k) might be considered.