Sometimes we experience a financing gap between the previous sales and the next purchase and may need a little help to bridge the gap, but only temporarily. Such short-term financing may be difficult to secure at short notice, given the long approval process of conventional financial institutions. Other times, your credit score may make you unqualified for short-term financing even if there are funds coming in soon.
It would be a pity to have to give up that dream home purchase just because you fail to secure short-term funding, knowing very well that you have the ability to afford it. In such cases, bridging loans can come in handy.
Bridging loans are short-term financing loans offered for transactions like property purchases. Licensed moneylenders provide bridging loans that serves as short-term housing loan to enable homeowners to purchase their dream homes even before their previous property sales are completed.