Bridge Loans For Wilmette Sellers Buying Next

You found your next home, but your current place in Wilmette still needs to sell. Do you wait and risk losing the house, or move fast and figure out the financing? You are not alone. Many North Shore sellers face this timing puzzle. In this guide, you will learn how bridge loans work, what they cost, the risks and alternatives, and a step-by-step plan tailored to Wilmette sellers. Let’s dive in.

What is a bridge loan?

A bridge loan is short-term financing that lets you buy your next home before you sell your current one. It uses your home equity to cover a down payment, closing costs, or to pay off your existing mortgage until your sale closes. Terms are usually a few months up to about a year, and the balance is repaid when you sell or refinance into a long-term mortgage. NerdWallet’s overview of bridge loans explains the basics clearly.

Why Wilmette sellers consider bridge loans

Wilmette’s market has been competitive, with public trackers showing a median sale price around the low 1 million range and many homes moving in roughly one month to six weeks. That pace makes non-contingent offers more attractive when you find the right home. A short bridge term can be enough if your pricing and presentation are on point. For a current snapshot of local timing, see Rocket’s Wilmette market report.

How bridge loans work

Common structures

• Second-lien bridge: you keep your current mortgage and add a short-term second loan against your equity. You carry two payments until you sell. See the basics in LendingTree’s bridge financing guide.
• First-mortgage bridge: a new short-term loan pays off your existing mortgage and advances cash for your next purchase, so there may be a single temporary payment. Covered in LendingTree’s guide.
• Closed vs open bridge: closed loans have a defined exit, such as a signed sale contract, and tend to price lower. Open loans allow more timing flexibility and usually cost more. See a clear comparison of closed and open structures here.

Who offers them

Regional banks, credit unions, mortgage banks, private lenders, and specialist programs provide bridge options. Some modern “buy-before-you-sell” platforms, such as Knock’s program, package bridge funds with added protections. Not every lender offers bridges, and some require you to use them for the permanent mortgage too.

Costs, qualification, and timing

Rates and fees

• Rates are typically higher than standard mortgages. Recent snapshots show many bridge loans in the rough 9 to 12 percent range, depending on lender and profile, according to an industry update from Lightning Docs.
• Up-front fees often run about 1 to 3 percent of the loan amount, plus appraisal, title, and other closing costs. Some programs use flat fees. See AP’s bridge-loan explainer and NerdWallet’s guide for details.
• Many bridges are interest-only with a balloon payoff at exit. Confirm whether interest accrues into the payoff amount. NerdWallet covers payment structures.

What lenders look for

• Equity: many lenders want at least roughly 15 to 25 percent equity, and they cap combined loan-to-value across properties, often around 75 to 80 percent. See NerdWallet’s discussion of LTV and equity.
• Credit, income, and DTI: strong credit and verifiable income help. Some programs allow debt-to-income up to about 50 percent, but standards vary. See Bankrate’s primer.
• Exit plan: lenders want a clear repayment path, such as a signed sale contract or a plan to refinance. Learn the difference between closed and open exits here.

Timeline to fund

Bridge loans can fund faster than a traditional mortgage. Private lenders can move in days, while banks may take a couple of weeks or more. Plan for appraisal and title work, and start early. See timing context from CNBC Select.

Documents you will need

Gather pay stubs, W-2s and tax returns, bank statements, your current mortgage statement, homeowner insurance, and property details. An appraisal or price opinion and a realistic exit plan help speed underwriting. See a helpful list from Mortgage.com.

Risks and how to reduce them

Bridge loans solve timing, but they add cost and risk.

• Carrying two homes: if your home does not sell in time, you may owe two payments plus a balloon payoff, which can strain cash flow. See NerdWallet’s risk overview.
• Higher borrowing costs: rates and fees can reduce your net proceeds. See a cost discussion from CNN Underscored Money.
• Different disclosures: some bridge loans qualify as temporary financing under federal rules, which changes standard disclosures. Review the CFPB’s RESPA guidance here.

Practical ways to mitigate

• Model a conservative sale timeline using current Wilmette metrics, and plan for 6 to 9 months in a stress test. For local timing context, see Rocket’s Wilmette market report.
• Keep strong reserves to cover two mortgages and a few months of unexpected costs. See tips on preparedness from Mortgage.com.
• Use a closed bridge when you have a signed sale contract, and price open bridges carefully if timing is uncertain. See the closed versus open comparison here.
• Compare traditional bridge loans with modern buy-before-you-sell programs like Knock, and evaluate total costs and protections side by side.

Alternatives to compare

• HELOC: revolving line on your current home, often with lower rates and flexible draws, best if you want ongoing access to funds. Note some lenders restrict HELOCs when a home is listed. See this comparison of HELOCs and bridges from Point.
• Home equity loan: a lump-sum second mortgage at generally lower rates than bridge loans, useful when you know the amount you need. See Bankrate’s overview.
• Piggyback loan: an 80-10-10 style structure to avoid PMI and boost your down payment without selling first. Learn more at Investopedia.
• Contingent offer: lower cost and less risk, but can be less competitive in a fast market. See the pros and cons in NerdWallet’s guide.
• Buy-before-you-sell programs: packaged solutions with added protections, such as Knock’s offering. Compare fees and terms closely.

Quick Wilmette seller checklist

1. Estimate your likely sale price and timing based on recent Wilmette comps and the latest monthly data. Start with Rocket’s local report and refine with your agent’s MLS insights.

2. Calculate the bridge amount you need. Add your target down payment, estimated fees, and projected interest for your expected term, then add a buffer. Use this bridge loan calculator to test scenarios.

3. Collect documents early. Pull income, asset, mortgage, insurance, and property records, plus your listing plan or sale contract. See a document list from Mortgage.com.

4. Get terms from 2 to 3 lenders or programs. Compare rate, fees, payment type, prepayment terms, funding speed, and whether you must also use the lender for your long-term mortgage. See Bankrate’s comparison tips.

5. Ask critical questions. Is it open or closed, what is the exit requirement, is the rate fixed, how do fees accrue, what happens if your home does not sell in time, and are reserves required? See a helpful framework here.

6. Confirm closing details with your agent and a local closing attorney. Bridge loans can have different disclosure and lien-priority rules. Review the CFPB’s RESPA note here.

The bottom line

In a competitive Wilmette market, a bridge loan can help you write a stronger, non-contingent offer and align move-in dates. The tradeoff is cost and the responsibility of carrying two homes if your sale takes longer. When you compare bridges with alternatives, model a conservative timeline, and keep cash reserves, you can move with confidence.

If you are weighing a bridge loan or a buy-before-you-sell option for a Wilmette move, reach out to Hasselbring Partners. Our calm, high-touch approach and North Shore expertise help you map the cleanest path to your next home.

FAQs

What is a bridge loan for Wilmette home sellers?

• A bridge loan is short-term financing that uses your current home’s equity so you can buy your next home before you sell, then you repay it when your sale closes or when you refinance, as explained by NerdWallet.

What do bridge loans cost in 2025?

• Many short-term bridge loans have been priced around 9 to 12 percent nationally with additional fees of about 1 to 3 percent of the loan amount, based on Lightning Docs and AP News.

How fast can a bridge loan fund for a purchase?

• Some private lenders can close in days, while bank programs may take a couple of weeks or more, so start early and plan for appraisal and title work, according to CNBC Select.

What happens if my home does not sell before the bridge loan is due?

• You may face two payments and a balloon payoff, so build a conservative timeline, maintain cash reserves, and consider a closed bridge when you have a signed sale contract, per NerdWallet and the closed versus open overview here.

What are lower-cost alternatives to a bridge loan?

• Depending on your equity and timing, a HELOC, a home equity loan, a piggyback loan, a contingent offer, or a buy-before-you-sell program may fit better; compare options using Point’s HELOC comparison, Bankrate’s primer, Investopedia’s piggyback overview, and Knock’s program.