
Once you have selected a home and entered into agreement with the seller, the next step is to pay the purchase price. If you are relying on the sale of your existing home for payment purposes then it may delay the purchase transaction. Your existing home can wait to be sold; you may take bridging loans and complete the new home deal. Bridging loans are short term facilities provided by the lenders so that you can fill the time gap between buying and selling of two properties.
Bridging loans may be 'closed' or 'open' depending upon the fact whether your home has been put on sale or not. If agreements have been exchanged then it is a case of 'close bridge'. If you are still to put your home on sale then it is a fit case for 'open bridge'. In this case, lender may ask you many questions because nothing concrete has been done on your part to repay the loan within a short time.