You need to move into a bigger home, but how can you afford it?
Most of us don’t have the cash lying around to buy a new house, so we may need to finance it. So, let’s talk about possible finance options. There are a lot of financing options out there, and it all can be a little confusing so here are the two most common options to get you started.
Option one, traditional mortgage, this is most likely what you have now. You will submit financing information to be reviewed by a lender to determine the amount you qualify for. Once that is determined, you will have your budget, know how much you need to put down, and what the approximate payment will be. If you are planning on selling your current home, make sure to let them know! This loan will most likely require that you either sell your current home first, or close concurrently.
Option two is a Bridge Loan. This type of financing can help you “bridge the gap” of funds so to speak, and get you into your new home before selling your current one. Using your income, and the equity in your current house, a lender may be able to give you a bridge loan to purchase your next home. The fees can be a little higher with this type of loan, and you need to have quite a bit of equity in your current house. However, this is a great short-term option, and most people refinance to a traditional mortgage shortly after selling their previous home.
Speaking with a seasoned local Grand Rapids agent and a local lender who can provide you with the best options for your situation is key. If you are unsure where to begin or who to use for your lender, we would be happy to give you the names of A&J Realty Partners’ preferred lenders who we know will help you find the best options!
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