A short-term loan that bridges the gap when you buy a new home before selling your current one and the closing dates don't align. It covers the period between your new home's closing date and the date you receive funds from your existing home's sale. Bridge loans are typically available for a few days to a few weeks.
Why It Matters
If you're buying and selling simultaneously, misaligned closing dates can leave you temporarily owning two properties without the sale proceeds to fund the new purchase. Bridge financing solves this, but it comes with fees and interest. Aligning closing dates is always the cheaper option when possible.
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