While the current seller’s market lowers your risk of getting stuck paying multiple loans, markets can change – quickly. If the “for sale” sign stays up longer than you expected, you may find your finances stretched thin.
Bridge lending uses your existing home as collateral for the home. If you default on the bridge loan, the lender could foreclose on your home. So, be really honest about your ability to manage and afford a bridge loan and a mortgage commitment (or two), even if it’s only for a short period of time.