Hide Data from the Bridge Loan Agreement and eSign it in minutes

Aug 6th, 2022
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How to Hide Data from the Bridge Loan Agreement

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hey guys welcome back Im Jeff Smith Coldwell Banker Residential Brokerage here in Southern California today were gonna talk about bridge loans Im gonna tell you what a bridge loan is Im also going to tell you how you use bridge loans essentially to buy a property without selling your existing property and why you would want to do that and lastly qualifying for bridge loans so lets start with the basics on what a bridge loan is a bridge loan is essentially a short term loan that allows you to use the equity from your current home to buy a new property without selling your current home and so why would you want to do that well you know were in a market where its very very competitive homes come on the market and if theyre priced correctly especially in certain price points they sell very very quickly so if youre you know if youve got a house to sell even its if its in escrow you have to make a contingent offer on that new property which basically means that youre youre purc

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Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.
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Does a bridging loan affect your credit score? A bridging loan can affect your credit score. However lenders are not primarily concerned with credit scores but will run credit rating checks on their applicants. If you are unsuccessful in applying for a bridging loan, then this will show on your credit file.
Borrowing from family can be a great alternative to taking out a bridging loan, although it does come with certain challenges. Where funds may be available from a family member, you must consider the cost saved by borrowing from family, compared with any potential repercussions should you struggle to repay them.
Most commonly used when buying a new home, residential bridge loans are secured against a property in which the borrower will soon be renting out to tenants.
Bridging loans are a secured loan, meaning that you have to secure an asset against them, usually a property or properties. As there is a risk of losing your asset, bridging loans are sometimes known as the loan of last resort.
To get a bridging loan, you will have to have a property to be put up as security against the loan. You can borrow up to 80% loan to value (LTV) on the equity within your property. Bridging loans are specialised short term finance, typically acquired for between 3 months to 12 months.
Most bridging loan providers require property as security. This could be just one property, or several. They will secure their loan by taking a charge over the property or properties.
Refinance to a longer-term mortgage Refinance to a residential or buy to let mortgage is a common exit strategy for bridging loans.
Many lenders require a minimum deposit of 25% to 30% for a bridging loan. Similarly with mortgages, you can unlock more favourable interest rates with a larger deposit. Typically, the lowest rates for a bridging loan can kick in with a deposit of around 40%.

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