When buying a new home most contracts do not make the purchase of your new house contingent upon the sale of your old one. In other words, you must go through with the purchase even if your current house does not sell.
At the same time,most contracts do specify that if you back out of the deal, you will forfeit the deposit made when the contract is signed, usually 10 percent of the purchase price.
But that is not all you may loose. You will loose the money you spent on the home inspection, title search, survey and legal services to name just a few.
The solution, in many cases, is a bridge loan.
When considering a bridge loan, the main questions we are going to ask you is do you have a good credit rating and enough money to carry a new mortgage, an old mortgage and the bridge loan.