If you are in an unavoidable situation where you must close on your new home before you close on your old home, you will probably need to secure financing to pay the difference between your new mortgage and the cost of your new home.
In this case, you need to arrange what is commonly called a bridge loan to close the gap caused in your cash flow. This is a short-term loan that you pay off once you close on your old home and now have the cash to pay off your loan.
Don't get caught by surprise. If you think you'll be in this situation, plan ahead and get your options on the table as soon as possible.
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