Buying and selling a house in Oklahoma at the same time can be a real challenge. If you’re struggling to get a good deal on both sides, you can explore creative financing options, such as the bridge loan Oklahoma lenders offer.
Timing the two real estate transactions can be frustrating because it’s rare to perfectly match the sale of your current home with the purchase of your next one. On top of that, you could face financial strain when you can’t sync timelines: managing two mortgage payments, paying for a temporary rental, and managing multiple moving costs.
As a short-term financing solution, bridge loans empower you to leap ahead to purchase your new Oklahoma home before saying goodbye to your old one, helping you keep all the pieces in place without the interim shuffle.
Yes, You Can Buy Before You Sell. Why Move Twice?
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.
What is a bridge loan, in simple words?
A bridge loan is designed to “bridge” the gap between buying a new home and selling your old one. It offers temporary financing so you can move ahead with your Oklahoma home purchase without waiting for your current one to close. After your old home sells, the proceeds pay off the loan, helping reduce timing and cash-flow pressure.
Generally, bridge loans last from six months to a year. While they may have higher interest rates due to their temporary nature, they offer the agility to move on your terms.
How does a bridge loan work in Oklahoma?
Imagine you’ve stumbled upon an Oklahoma house that checks all your home shopping boxes. But there’s a hitch: your current home is still waiting for the right buyer. A bridge loan offers you a way to move forward. By tapping into the equity of your unsold home, you can secure the funds needed for the down payment and closing costs of your new abode.
In many cases, the financial institution where you’re seeking a mortgage for your new Oklahoma home will manage your bridge loan as well. They typically expect your home to be on the market as they offer the bridge loan with a 6- to 12-month term.
Your lender will take a close look at your debt-to-income ratio (DTI), an equation that takes into account the payments from your current mortgage loan, your new payment on the property you’re purchasing, and the interest-only payment on the bridge loan you are requesting. Oklahoma lenders consider all these financial factors to ensure you can make the payments on both properties if your home does not sell right away.
But if your old house is on the brink of a sale, with a buyer who has secured loan approval, the loan company might decide to consider only your new mortgage payment in their calculations.
What are the benefits of a bridge loan in Oklahoma?
Securing a bridge loan in Oklahoma can unlock several advantages that streamline the transition between selling your old home and settling into your new one: