Question 1

How long does bridge loan approval take?

Accepted Answer

Most lenders need 7-10 days for full approval. Rush scenarios can close in 14-21 days if your financials are straightforward.

Question 2

What happens if my house doesn't sell in time?

Accepted Answer

Most bridge loans allow extensions for a fee. Some convert to longer-term financing, but rates typically increase after the initial term.

Question 3

Can I use a bridge loan for investment properties?

Accepted Answer

Bridge loans typically fund primary residence moves. For investment properties, hard money or investor loans usually fit better.

Question 4

Do I need to list my current home before closing?

Accepted Answer

Requirements vary by lender. Some require an active listing, others just need market analysis showing realistic sale price and timeline.

Question 5

Are bridge loan rates higher than regular mortgages?

Accepted Answer

Yes, expect 7-10% versus conventional rates. You're paying for short-term flexibility and the ability to own two homes simultaneously.

Bridge Loans in San Luis Obispo: Buy Before You Sell