Auction Bridging Loans are a type of short-term finance facility, which is used for individuals who have an asset that is required as security. They are often confused with Property Development Loans, however, the similarities between these two types of loans are just about non-existent. The main difference is that Auction Bridging Loans are designed to help people buy something quickly, whereas Property Development Loans are designed to help people build something quickly. Here is how auction bridging loans work.
First of all, if you are taking out an auction bridging loan, it means that somebody else is selling something that you want to buy. This could be either a car, motorcycle, boat, or caravan. It does not matter what it actually is.
When somebody else sells something at the auction house, it usually means that they are under pressure to get rid of their property as quickly as possible, which means that you have a very good chance of getting what you want much cheaper than usual, especially if you apply for this type of bridging loan by going the auction finance route. So if a vehicle that usually sells for $10,000 goes at auction and only gets one offer for $8,000 because the person selling has to get rid of it fast, then congratulations! You have just bought yourself a bargain.
The Application Process
The second thing that you need to do is actually apply for a bridging loan through your financial broker. The good news about this is that the loan will be much cheaper than if you were applying to finance something normal like a house because it means that you are buying something which needs repairs or extra parts. This means that the bank knows that you are likely to spend the money that they are giving you on things that will actually make them more money in return, which is why auction bridging loans can be anywhere between $5,000 and $100,000. This should give you a pretty good idea of how much money you should apply for. Sometimes, your financial broker will be able to get you the money that you need within 24 hours.
Keep in mind that whether your finance broker is helping you with buying a car or a house, you should always make sure that you get an independent inspection carried out before buying anything. This is to avoid getting ripped off, because if you buy something without checking it properly beforehand, then you are likely to end up in trouble later on down the line when it breaks down. Be careful.
The Title Deed
Once you have actually purchased your vehicle, boat, or house, it is important for you to make sure that the title deed has been transferred over to you. If not, then this could lead to major complications further down the line when it comes time for you to sell it on again. How this is done is that you will usually need to sign some documents. It is important for you to always make sure that someone with experience in buying and selling vehicles/houses/boats is there to tell you what these papers mean. If the bank does not do this, then it is up to you to find somebody else who can.