A MESSAGE FROM OUR PRESIDENT - How a Bridge Loan Can Help You Get the House You Want

A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.

Our local real estate market inventory continues to be at an all time record low. Based on my experience, a market our size should have about 2,000 homes and condos for sale. This seems to be a nice balance between buyer demand and seller opportunity, providing a nice array of homes to select from without the pressure to buy immediately.

Today, we have about 275 homes and condos on the market. That number will increase a little bit as the weather warms, as will the number of buyers.

I don't foresee any significant change in inventory on the horizon. Part of the reason is homeowners are reluctant to sell their home without first identifying a replacement home. And with low inventory, finding a replacement home is difficult. Sellers also have difficulty making an offer on a replacement home that is subject to the sale of their current home. There are simply too many other buyers that can make an offer without a home sale contingency.

So, what is a homeowner to do?

Let me introduce you to a hybrid mortgage product that can help you bridge the gap between your current home and your new dream home. Not surprisingly, it is known as a “Bridge Loan”. Simply put, it is a short-term loan that allows you to own both homes simultaneously as you make the transition. Once approved, you can now safely make an offer on that new home without the contingency of selling your current home. Once you are under contract on a new home, your current home can be put on the market and get sold quickly so the simultaneous ownership period will be very short.

A bridge loan helps you achieve your objective and also offers another powerful benefit. You get to control the overlap between homes. Think about how pleasant it will be to close on your new house and do a little painting or clean the carpets before you have to move in! Likewise, you can move at your leisure rather than all in one day.

A bridge loan may not be for everyone, but if it sounds like it may work for you, it costs nothing to investigate. Give us a call and we can direct you to mortgage professionals who can give you actual numbers for your particular needs. A Gambino Broker can give you a current market analysis of your home. Armed with this information, you can now make a well-informed decision.

Jonathan R. Krause, President Gambino Realtors

815.282.2222 | www.GoGambino.com