Final answer:
The couple might need a bridge loan to cover the financial gap between buying their new home and selling their current one. An escrow account could simplify their payment process for home insurance and property taxes.
Step-by-step explanation:
A couple who has purchased a new home in Kansas and has their current home in Tennessee on the market, without a contract yet, may need to consider taking out a bridge loan. This type of loan can provide temporary financing to bridge the gap between the purchase of the new property and the sale of the old one. Additionally, managing costs associated with a new home can be streamlined through an escrow account, which can be set up to manage regular payments for both home insurance and property taxes as part of the normal monthly mortgage payment. This helps homeowners by consolidating these two separate expenses into one manageable payment.