Many buyers and sellers are concerned about how to proceed with a residential real estate transaction. For many buyers, the purchase of a home is one of the biggest financial transactions of their lives. For many sellers, it is challenging to coordinate the sale of their home with the purchase of a new home that suits them better. Whether you are buying or selling a home, the Revere real estate lawyers at Pulgini & Norton may be able to help. Coordinating the important tasks that must be completed in a property transaction requires a sophisticated and knowledgeable approach.
Assistance for Your Real Estate NeedsOne way for a seller to deal with the problem of the passage of time that falls between the closing date for an existing home and the closing date for the purchase of a new home is a bridge loan. These are small loans that give a seller financing until they can secure a long-term form of financing. These loans do not need to be presented to the secondary market. While they are in effect, two mortgages are maintained, one on an existing property and the other on a new property. Unlike with long-term loans, lenders are less concerned about default. It is unlikely that a borrower will face a financial catastrophe that results in default.
On the other hand, lenders may be less forgiving of a late payment with a bridge loan. Over time, interest will add up, and the penalties are higher. You might ultimately need to pay much more than what you would have paid with a home equity loan.
You will also need to make sure that you work with the right lender for your new mortgage. Sometimes it is possible to lock in a particular interest rate in writing. In our state, rate lock commitments may not be issued by a mortgage broker. Instead, you will need to obtain the rate lock from an actual underwriting lender.
It is important to lock in at the right time. Usually, a lock lasts 10-60 days, which is enough time for a lender to generate loan documents. The longer the rate lock, the higher that the interest may be. The offered rate depends on various factors, including the credit score, the type of property, market rates, and the geographical location. People who lock in too early may not get the best rate or may need an extension. In some cases, it is possible to get a float down option so that a better rate may be obtained down the road if rates decrease.
Consult a Real Estate Lawyer in Revere or the Surrounding AreasRevere is a city that played a historic role in the Revolutionary War as the site of the first naval battle. The median income for a household in Revere is about $37,000. If you are buying or selling property there, you should consult an experienced Revere real estate attorney. At Pulgini & Norton, we provide comprehensive representation to buyers and sellers at every step of this process. Contact us at 781-843-2200 or through our online form for a consultation with a property transaction attorney.