A Guide on How to Get Approved for a Bridge Loan


Tips on Qualifying for a Bridging Loan

Richard Butler Creagh is the founder of Henley Finance. He came to the conclusion that this was a business that he understood and that from a successful few years in buying and renovating buildings with his own team - to building up a rental portfolio of properties in London, he found that not only could he value the properties very easily, he could also estimate any building works that needed to be carried out. After a lot of consideration, he set out to form his own bridging company.
Home-owners that want to buy a new house while still living in his current home can resort to bridge loans to finance the move. There are a lot of times when people would prefer not to move out of their house while they are still selling it and bridging finance is an ideal solution for that. It is encouraging to know that qualifying for a bridge loan is going to be less complicated when compared to getting approved for a mortgage loan. Still, there are specific requirements that one must meet in order for him to get approved.

You will need to show proof that you indeed have the means to cover the monthly fees that you will be expected to pay. You will also need to have the necessary asset which you can then use as collateral for the loan. It is necessary for you to do your own research first and find out as much as you can about all the other available options for you before you apply for this financing setup.

Find out how much it is that you will need before applying for the loan. Determine the figures needed for you to gap the sale of your existing home and the purchase of a new home or the construction of a new one. Generally, the length of the bridge loan is something that the lender will decide on. Typically, this can be between 6 months to 12 months.

Shop around. You need to find a mortgage broker or a banker that will have the means to help you get the bridge loan processed. A number of financing companies are around so, make the most of their presence and research those that can get you competitive rates. The fees are going to vary from one provider to the next which is why it is encouraged for you to really take your time. Be sure to consider the points that they will charge you with as these are usually where you will be expected to pay for a premium.

Get your assets appraised too. Before you can qualify for a bridge loan, you will need to have ample valued assets that can then be used as collateral for the loan. You will also need to show proof that you can pay the monthly payments too. The bridge loan will be largely based on the assets that you have presented as collateral along with the provider’s assessment of your ability to pay.

Watch Richard Butler Creagh video below.

Before you apply, consider getting your monthly expenses trimmed down as much as you can. Also, do check what are the conditions involved in the event that you might need to extend your bridge loan. You will never know, but there may come a point when you may have to resort to this option. It is best that you know ahead of time. Learn more about bridge loans and how you can maximize them by reading about Richard Butler Creagh online and follow Richard Butler Creagh on Twitter here 

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