If you are using the equity you have built within the home you are selling to purchase another home and your closing (possession) dates are not on the same day you will require bridge financing.
Bridge financing is a temporary loan which bridges the gap between the closing date on the home you are selling and the home you are buying. It allows you to carry the mortgage on two properties for a specified amount of time.
A bridge loan is a relatively cost worthy way to accommodate for days between closing dates. Most bridge loans have a flat fee, along with a simple daily interest fee and there is often a maximum amount of days the loan can extend to. The bridge loan can’t be applied for until you have a firm sale on your home.