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If you’re thinking about selling your Denver area home, it may take a little longer than expected. According to Rocky Mountain News, the number of unsold homes in the Denver area market recently hit record highs. The large number of properties on the market has increased the marketing time for many sellers, even during the spring and near summer months when real estate activity rises as families try to get settled before the school year begins. At the end of May there were 29,100 homes on the market.

This news can be quite discouraging for sellers; however lenders are working to help ease the stress and offer solutions. If you’ve already found your dream home but you’re worried about the length of time it will take to sell the home you’re currently in, you may want to consider a bridge loan. Bridge loans are designed to help families “bridge” the financial gap between their current home and the home they want to purchase. They can help ease the burden of costs associated with moving into your new home such as dual mortgage payments, your down payment and closing costs.

 

 

But before you breathe a sigh of relief, you should know that the loan doesn’t come without penalties and risks. If you’re considering a bridge loan you should be prepared to pay a higher interest rate than you’d pay on a more traditional type of home loan. Additionally, the term on the bridge loan will be shorter, many with only six months to pay the money back.

 

 

If you’re a seller and you need advice on whether a bridge loan might be the key to moving into your next Denver area home, give us a call. We can help you evaluate your circumstances and help you select the best option to fit your family’s specific needs in an uncertain market.

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