Why Would You Apply for Bridging Building Loan?
Bridging building loans are short term loans required for a short period. If you want to purchase a building or a property and seal the deal in short span, then you can apply for such bridging building loans. Sometime, people need to sell their property and use the same to buy a new property. But, buying property is easier then selling because you need to produce various papers and transfer the name while you sell your property. But the builder will not wait for you and you might miss the deal or your dream home in lack of capital. In this regard, you can rely on bridging building loan. Besides, you can easily apply and close such loans within two weeks to twelve months as per your convenience to repay or close the loan
1. What are the features of bridging building loan?
Anyone who is willing can apply for such bridging loans for their business to increase its cash flow. If you live in the Golden State and you buy a property at an auction, then you need some instant cash, and you can apply for a California bridge loan for this purpose. Even you can choose such short-term loans for your home improvement and renovation projects. This short-term finance can provide you much relief regarding your major investments:
- Most of the lenders can provide you bridging building loans for short-term. The tenure of the loan may vary from two months to twelve months maximum. However, the rate of interest of such loan is high because lenders cannot get any benefits from such short-term loans except that of the interest amount.
- Apart from that, you will get the finance up to 65% for your commercial property and 80% for the residential property. However, at first, the lenders will evaluate your property and identify the probable market value, then they will disburse the loan based on your property value.
- Bridging building loans are available in two different modes such as closed bridging loans and open bridging loans. Closed bridging loans have the stipulated timescale and you need to close the loan account within this term period. But open bridging loans are riskier because there is no timeline and you may need to carry such loans for a longer period of time.
3. What are the advantages of bridging building loans?
The biggest advantage of bridging building loans is their short time span. It may seem to be difficult to pay such huge amounts within a short timeframe, but if you manage your finance and pay the amount within one year, then you do not need to bear the long-term expenditure. But if you avail the mortgage loans, then you need to pay the EMI for longer period and it will cost you even more.
- If you repay the bridging building loan within a short timeframe, then your credit score will improve. Such short-term loans can directly hit your credit history and you will get more benefits from the lenders in future for your good credit score.
- Apart from that, other housing loans such as home loans and mortgage loans can take two to three months for processing, till then you have to wait for a longer time to get the disbursement letter. But bridging loans can be disbursed within three to seven days and you will get the loan amount within a short time.
- Even, bridging loans can make you a cash buyer and you can negotiate the price of the property. In this case, you will get a chance to buy the property at a reduced cost.
So, what are you waiting for? Search for bridging building loans and choose the best lender for your deals. But do not forget to check their license, interest rate, and hidden charges, if any before you make any deal.
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