Buying your next home in Bellevue often comes down to one question: do you use a bridge loan so you can write a stronger offer, or do you make your purchase contingent on selling your current home? If you feel torn, you are not alone. The stakes are high in a market with sought-after homes and meaningful price points. In this guide, you will learn how each path works, the real costs and risks, and a practical way to decide which fits your goals. Let’s dive in.
Quick definitions
Bridge loan: A short-term loan secured by your current home that gives you cash for the down payment, closing costs, or carrying costs on the new home. You usually repay it with the proceeds from selling your current property. Terms often run a few months up to a year, with higher rates and fees than a standard mortgage.
Sale contingency: A clause in your offer that says you only have to buy the new home if your current home sells and closes by a set date. In local practice, a seller can often keep marketing the home and accept other offers, and you may have a short window to remove your contingency if the seller receives another offer.
How a bridge loan works in Bellevue
A bridge loan is designed to help you buy first, then sell. This is attractive when a property you love appears and you need to move quickly.
Terms and costs to expect
- Structure: Often a second mortgage or secured line of credit. Many are interest-only during the term.
- Costs: Typically higher interest rates than a long-term mortgage, plus origination fees, appraisal, and closing costs. Some lenders may charge a prepayment penalty.
- Repayment: Usually paid off from the proceeds when your current home sells. You may make monthly payments while you hold both properties.
Qualification and underwriting
Lender policies vary. Many lenders want to see that you can qualify for the new mortgage and still handle payments while you own both homes. Underwriters may count the bridge loan in your debt-to-income ratio unless it is clearly structured to be paid off at the new closing. Ask your intended mortgage lender, in writing, how they will treat the bridge loan.
Timeline and closing coordination
Bridge loans are meant for short windows. If your current home does not sell fast, carrying costs can add up. In Washington, escrow companies coordinate closings and disbursements. The payoff of the bridge loan can be included in the closing process when your current home sells, but you need to plan that coordination with your escrow officer.
How a sale contingency works here
In the Puget Sound region, most buyers and sellers use standard forms for contingencies. The addendum specifies that your purchase depends on selling and closing your current property by a stated date.
Kick-out clauses and notices
Sellers often include a “kick-out” or release clause. That allows them to keep showing the home and accept another offer. If that happens, you may receive a short deadline, often 24 to 72 hours, to remove your contingency or step aside. Timing and notice procedures must be followed exactly as the contract states.
Deadlines and earnest money
Contingencies include enforceable dates for removal and closing. You will still post earnest money, and your rights and obligations will follow the contract forms. Missed deadlines can have real consequences, so document everything and track each date.
How sellers view contingencies in Bellevue
In many Bellevue neighborhoods, sellers prefer offers without sale contingencies or with short windows and strong proof of financing. Your odds improve if your current home is already listed, under contract, or very likely to sell quickly.
Pros and cons at a glance
Bridge loan: buyer advantages
- Lets you write a non-contingent offer in a competitive setting.
- Reduces timing stress by allowing you to buy first and move once.
- Helps you move fast on a rare or design-forward property.
Bridge loan: buyer risks
- Higher short-term costs: interest, fees, and possible payments on two homes.
- Qualification complexity: lender treatment of the bridge loan can affect approval.
- Market risk: if your current home takes longer to sell, carrying costs rise.
- Collateral risk: the bridge loan is secured by your property, so missed payments carry serious consequences.
Sale contingency: buyer advantages
- Lower immediate financing costs and fewer moving parts.
- Less chance of paying two mortgages at once if you sell first.
- Simpler cash flow and fewer reserves needed.
Sale contingency: buyer risks
- Less competitive in a seller-favored segment.
- You could lose the home you want if the seller will not accept a contingency.
Seller perspective on accepting a contingency
- Pros: Wider buyer pool and the possibility of a solid price.
- Cons: Added uncertainty and delays while the buyer tries to sell. Sellers often want kick-out protections and short timelines.
Bellevue market realities
Bellevue has long been a high-demand area with meaningful price points. Many homes draw strong interest, which makes a contingent offer harder to win. At the same time, the higher dollar value of local homes increases the cost of carrying two properties. That is why the details of your financing and timing plan matter.
If you want your offer to stand out, a bridge loan or a short, well-documented contingency window can help. If you prefer to minimize risk and cost, selling first or using a rent-back may be the better fit.
Alternatives and hybrid strategies
- HELOC: A home equity line of credit on your current home. Variable rate and flexible draws, often cheaper than a bridge if you qualify and have sufficient equity.
- Home equity loan: A fixed-rate second mortgage that provides a lump sum with predictable payments.
- Cash-out refinance: Refinance your current mortgage to pull equity. This can raise your long-term interest expense but may provide needed funds at mortgage rates.
- Bridge-to-term programs: Some lenders combine short-term bridge financing with your eventual long-term mortgage.
- Seller rent-back: Sell first, then rent back your home for a short period after closing. This can remove the need to buy first while giving you time to shop.
- Short-window contingency with kick-out: Keep a contingency, but make the timeline short and provide strong proof of funds and listing status to be more attractive.
- Back-to-back closings: Coordinate the sale and purchase on the same day with experienced escrow support.
A simple decision framework
Use these questions to match your plan to your priorities.
Start with your goals
- Is winning a specific home your top priority, even at a higher short-term cost? Consider a bridge loan or other liquidity.
- Is minimizing risk and cost your top priority? Consider selling first or a rent-back.
- Are you flexible on timing and property choice? A contingency may be workable.
Weigh key factors
- Market competitiveness in your target Bellevue neighborhood and price tier.
- Cash reserves and comfort carrying two mortgages, taxes, insurance, and maintenance.
- Equity in your current home and confidence in its sale timeline.
- Lender rules for debt-to-income and bridge treatment.
- Your timeline flexibility.
Checklist: questions to ask
Ask your lenders
- Do you offer bridge loans? What structure, term, rate range, and fees apply?
- Will the bridge loan count in my DTI for the new mortgage? What reserves are required?
- Are there prepayment penalties or conditions to pay off the bridge from sale proceeds?
- Are there any program restrictions for my loan type?
Ask your agent
- How competitive are offers in my Bellevue segment right now?
- If I make a contingent offer, what remove-by timeline is realistic to get accepted?
- Can we pair a contingency with a kick-out clause that sellers will accept?
- Can we structure a rent-back, flexible closing, or other terms to help the seller say yes?
Ask escrow/title
- What documentation is needed to show payoff of a bridge loan at closing?
- Can payoff be coordinated through normal closing disbursements?
Real-world scenarios
Scenario A: Competing in a hot segment
You find a home in a high-demand Bellevue neighborhood. To compete, you use a bridge loan, write a non-contingent offer, and close fast. You carry your current home and the new one for a short period, then repay the bridge when your sale closes.
Scenario B: Balanced market, risk-aware buyer
You prefer to limit risk, so you submit a sale contingency with a clear timeline and a kick-out clause. You show proof that your current home is listed and priced well. The seller accepts your plan with a firm remove-by date.
Scenario C: Limited equity
You do not have enough equity to draw from a HELOC or to refinance efficiently. You decide to sell first, negotiate a rent-back, and shop for your next home once your sale funds are in hand.
How Lizanne helps you choose well
You deserve a plan that fits your life, not a one-size approach. With a design-forward mindset and full-service representation, Lizanne pairs presentation and pricing strategy with practical timing tools. She leverages Windermere resources, including concierge-style prep support and a Bridge Loan option through the brokerage ecosystem, to reduce friction when you want to buy and sell around the same time.
Here is what that looks like in practice:
- Pricing and prep guidance that positions your current home to sell efficiently.
- Offer strategy tailored to Bellevue micro-markets and your price tier.
- Coordination with lenders and escrow so financing and payoff steps are smooth.
- Creative terms such as rent-backs or short-window contingencies when they serve your goals.
If you want a clear, confident path to your next home, let’s talk through your options and map the right sequence for your move.
Ready to start? Connect with Lizanne Wicklund for a consult.
FAQs
What is a bridge loan when buying in Bellevue?
- A bridge loan is short-term financing secured by your current home that gives you cash for the down payment and costs on a new purchase. You usually repay it when your current home sells.
How does a sale contingency work in Washington State?
- Your offer includes an addendum that makes your purchase dependent on selling your current home by a set date. Sellers often keep marketing the property and may trigger a short window for you to remove the contingency if they receive another offer.
Which is more competitive in Bellevue: bridge loan or contingency?
- In many segments, non-contingent offers are more attractive to sellers. A bridge loan can help you write a stronger offer, while contingencies may be harder to win unless timelines are short and proof of sale progress is strong.
What are the main costs of a bridge loan?
- Expect higher interest than a standard mortgage, an origination fee, appraisal and closing costs, and the possibility of paying two mortgages, taxes, and insurance for a period of time.
Can I qualify for a new mortgage if I have a bridge loan?
- It depends on the lender. Many will count the bridge loan in your debt-to-income ratio unless it is structured to be paid off at closing. Get written confirmation from your lender.
Are there alternatives to a bridge loan in Bellevue?
- Yes. Consider a HELOC, a home equity loan, a cash-out refinance, a short-window contingency with a kick-out clause, a rent-back after you sell, or coordinated back-to-back closings.
