Here’s my article about Bridge Loans and Contingency Clause on Sales Contracts.

Planning on purchasing a new home but haven't sold the old one?
Are you relocating to another state and need more time to sell your current home?

Bridge Loans is your best option. Although most Lender's offer this program for commercial loans, but some banks would have this on their product for residential properties.

Some features of a Bridge loans:
• Convenience: You don't have to wait until your current house is sold to obtain financing for your new home
• Less financial burden: You are only responsible for writing monthly payment checks on the new property during the first six months of the Bridge loan term.
• More home: The mortgage payments on the listed property are not used to qualify you for your new loan.
• More time: Provides you up to twelve months to sell your existing property
• Certain restrictions may apply to property location, and your credit score call for details.

This Program is Best for:
• Borrowers with high debt ratios due to two different mortgage payments.
• Homeowners who are relocating and haven't had time to sell their current home.
• Move-up buyers who don't qualify for financing two mortgage payments.

The Bridge Loan is the perfect answer for those borrowers who want to close on a new home but haven't sold or closed on their current home.

Utilizing the equity in your old home to finance the purchase of your next home, can definitely ease your monetary burden.

Don't delay, you can buy that new home sooner than you thought!

Mortgage Contingency Contract and Sales Contingency Contract is another option.

This contingency indicates that the agreement is dependent on your ability to obtain a mortgage, or other form of financing within a given time period. If this does not occur and both parties agree, the time to obtain financing may be extended. If not, the agreement may be terminated in writing. Talk to your real estate lawyer about this clause in the contract.

Mortgage approval and sales contingencies can be practical protection for buyers, except the lucky few who have cash on hand.

A contingency is a condition that has to be satisfied before there is an obligation to the purchasing party.

With a sales contingency, a buyer qualifies his obligation to purchase by making it contingent on the sale of his property by a certain date.

If buyers are concerned that their home won't sell in time for the closing on their new home -- allowing them to use the proceeds from their sale -- they should include a sales contingency in their purchase contract.

When sellers accept an offer with a sales contingency, they typically continue to show their home to other buyers. Under the terms of many contracts, if a better offer comes along, the seller can give the first buyer a specified time to lift the contingency or lose the home.

Without a sales contingency, though, a buyer may need to proceed with the purchase or stand to lose his earnest money.

Timing a home purchase is critical when you still own a home that could potentially hang in the market, you'll end facing two mortgages if you don't take advantage of the options available.

A program that will let a buyer pull out money from his former home and immediately using it to pay down the cost of the new home has only strategic advantage to offer.

Experts say mortgage contingencies are becoming more common -- even in brisk markets -- and have less potential to derail a transaction.

Because it's impractical for home shoppers to venture out without an idea of their price range, many buyers make a preliminary visit to a lender.

With a cursory review of a buyer's financial standing, a lender can provide an idea of how big a mortgage the buyer can afford.

But that isn't ironclad, so when a buyer places a contract on a home, it's usually contingent on the buyer receiving a loan at a specified amount and rate within a certain time frame.

Though most buyers don't encounter a hitch, there are some financial minefields that can derail the mortgage approval, like a buyer who loses his job before closing.

In an environment where interest rates rise quickly, a mortgage contingency can protect buyers who couldn't afford a purchase with a loan above a certain threshold.

If you are in this kind of sticky situation then talk to me...jocfncom@gmail.com

By Joel Inocencio

Synergy Marketing Group, LLC NY/NJ
We do loans in 49 states, except Rhode Island.