This is the question that turns a straightforward home sale into a logistics puzzle. You want to sell your current home and move into your next one — but the two transactions don’t automatically sync up, and the wrong sequence can leave you carrying two mortgages or living in a hotel for six weeks.

Selling First: The Lower-Risk Path

You know exactly what you have to work with. Once your home closes, your budget for the next purchase is clear. You can make an offer with a specific down payment number and confidence in your financing.

You can make a clean, competitive offer. When you’ve already sold, you’re not asking the seller to wait while your deal closes. That’s a real advantage, especially if you’re buying in a more competitive market than Killeen.

No double mortgage exposure. In Killeen, that might be $1,100/month. At your new location, it could be $2,500. That financial exposure is stressful and sometimes deal-breaking.

The rent-back solution. In Killeen’s current buyer’s market, rent-back agreements let you close on the buyer’s timeline while staying in the property for 30–60 days afterward at a negotiated daily rate. Many buyers will agree to this because the deal is otherwise clean. This often eliminates the housing gap entirely.

Buying First: When It Makes Sense

Texas TREC contracts support two types of home sale contingency:

• Home Settlement Contingency — your current home is already under contract. This is the stronger version. The seller knows you have a committed buyer, and risk of failure is low. Most sellers will accept this without a kick-out clause in a slow market.
• Sale and Settlement Contingency — your home is not yet under contract. Weaker. Most sellers who accept this will insist on a kick-out clause, giving them the right to accept another offer and give you 24–72 hours to remove your contingency or walk away.

In Killeen’s current buyer’s market — 7 months of supply — contingent offers are receiving a warmer reception than they did in 2021.

Bridge loans. A bridge loan lets you borrow against your current home’s equity to fund the down payment on your next home. Bridge loan rates in 2026 run approximately 8.5–11.5% APR — significantly higher than regular mortgage rates. Total costs typically run $13,000–$27,000. It lets you make a clean, non-contingent offer, which is the primary advantage.

The VA Loan Complication

If you’re using a VA loan on your next purchase while your current VA loan is still active, you need to have remaining entitlement available. A VA-approved lender can tell you your exact entitlement position. Don’t assume — check before building your plan around it.

Which Approach Is Right for You?

For most Killeen sellers: sell first, negotiate a rent-back, and buy next with a clean hand. This eliminates financial exposure and lets you make the strongest possible offer on your next home. If that sequence doesn’t work, a contingent offer structured around getting your Killeen home under contract first is the next best move. Bridge loans are a last resort — powerful tool, real cost. Every situation is different, and the right sequence depends on your equity position, your next destination’s market, and your specific timeline.

Frequently Asked Questions

What is a home sale contingency in Texas?

A contract clause making your purchase conditional on selling your current home. Texas TREC recognizes two versions: Home Settlement Contingency (current home already under contract — stronger) and Sale and Settlement Contingency (not yet listed — weaker, often requires a kick-out clause).

What is a kick-out clause in a Texas home sale contingency?

Allows the seller to continue marketing after accepting your contingent offer. If they receive another acceptable offer, they give you 24–72 hours to remove your contingency or terminate. In Killeen’s buyer-favorable market, many sellers accept contingent offers without a kick-out because competing offers are rare.

What is a bridge loan and how does it work in Texas?

A short-term loan (6–12 months) borrowing against your current home’s equity to fund your next purchase before selling. Rates run 8.5–11.5% APR in 2026. Total costs typically $13,000–$27,000. Lets you make a clean, non-contingent offer.

Can I use a VA loan on my next home while my current VA loan is still active?

Potentially yes, depending on remaining entitlement. Talk to a VA-approved lender about your specific entitlement position before building your plan around a second VA loan.

Is it better to sell first or buy first in Killeen’s current market?

For most sellers, selling first is the lower-risk path. Rent-back agreements often eliminate the housing gap. If you must buy first, a contingent offer tied to getting your Killeen home under contract is the next best option before considering a bridge loan.