Should You Use a Bridge Loan to Buy a New Home in DeSoto TX?

Should You Use a Bridge Loan to Buy a New Home in DeSoto TX?

Written by Steven J. Thomas, Refind Realty

Introduction

Thinking about buying a new home in DeSoto before selling your current one? You’re not alone. Many sellers want to avoid temporary moves and multiple closings. That’s where a bridge loan can help—but it’s not for everyone. I’m Steven, and I help clients make smart financial moves during their home transitions. Here’s how a bridge loan works, and whether it’s a fit for your situation.

What Is a Bridge Loan?

A bridge loan is a short-term loan that helps you use the equity in your current home to buy a new one—before your old home sells. It can allow you to move into your next place while still listing or closing on your existing home.

This type of financing is especially useful if you're shopping in a competitive market like DeSoto and want to make a strong, non-contingent offer.

Pros of Using a Bridge Loan

• Avoid making your offer contingent on the sale of your home
  This is critical if you're looking at Dallas–Fort Worth New Construction Homes that move fast.

• Avoid moving twice
  With a bridge loan, you can close on your new place and then sell your current home without rushing.

• Tap into your equity sooner
  You won’t have to wait for your old home to sell before putting down a payment on the next one.

• Make stronger offers
  A non-contingent offer is more attractive to sellers, especially in DeSoto’s hot market.

Cons to Consider

• You might carry two mortgages temporarily
  This could stretch your budget if your home takes time to sell.

• Bridge loans can be more expensive
  Interest rates and fees are often higher than traditional financing.

• You need at least 20% equity in your current home
  If you’re not there yet, other financing options may be better.

• Short repayment terms
  Most bridge loans must be paid off in 6–12 months, often when your home sells.

Smart Alternatives to Bridge Loans

If a bridge loan doesn’t fit your finances, here are a few other routes:

• Sell first, then buy
  This is the most cost-effective option, and I’ll help you coordinate the timeline so you’re not stuck between homes. Use my Home Seller Checklist to stay on track.

• Home Equity Line of Credit (HELOC)
  If your current home isn’t listed yet, a HELOC can give you access to equity without a bridge loan.

• Buy New Construction with Incentives
  Some builders offer extended closings or rate locks—great for sellers who need time. Browse New Construction Buyer Resources for tips and options.

When a Bridge Loan Makes Sense

Use a bridge loan if:

• You’re confident your current home will sell quickly

• You have strong equity and solid credit

• You want to move into your next home without renting in between

• You’ve spoken with a lender and know the full costs

How I Can Help

• I’ll review your home equity, price estimates, and projected market time

• I’ll connect you with lenders offering bridge loan options and explain every term

• I’ll help you sell your current home faster with the right pricing and marketing

• You’ll stay in control with real-time alerts through the Lone Star App

It’s the easiest way to stay on top of offers, updates, and showings while juggling two homes.

Download the Lone Star App here
https://lonestarliving.hsidx.com/@sthomas

You’re Always Home With Refind Realty!

Conclusion

A bridge loan is a useful tool—but it’s not one-size-fits-all. If your finances are solid and your current home will sell quickly, it can help you avoid a double move and win your next home with a strong offer. If you’d rather play it safe, there are other smart ways to make the move.

FAQs

1. What is a bridge loan?
It’s a short-term loan that uses your current home’s equity to help you buy a new home before selling the old one.

2. How much does a bridge loan cost?
Expect higher interest rates and fees than a traditional mortgage. Some loans offer interest-only payments for the first 6–12 months.

3. Is a bridge loan risky?
It can be if your home doesn’t sell quickly or if you don’t have strong finances. I help clients avoid these risks by analyzing their market and timing.

4. Are there alternatives to bridge loans?
Yes. You might use a HELOC, buy new construction with incentives, or sell first. I break these down in my New Construction Webinar.

5. How can I get pre-approved?
Use my Get Pre-Approved link and I’ll connect you with lenders familiar with DeSoto bridge loans and first-time buyers.