Trying to buy in Westlake before your current home sells? In a high‑end, low‑inventory market, timing can feel like the biggest hurdle. You want to write a strong, non‑contingent offer, but most of your down payment is locked in your current home. This guide breaks down bridge loans and buy‑before‑you‑sell options, what they cost, and how to choose the right path in Westlake. Let’s dive in.
Why timing is tricky in Westlake
Westlake sits at the premium end of the DFW market with limited supply and seven‑figure price points. Multiple trackers place local values in the multi‑million range, and numbers vary by data source and month. That price scale affects financing options, lender limits, and timelines.
Property taxes also matter to your total monthly carry. The Town of Westlake’s adopted 2024 ad valorem rate is $0.16788 per $100 valuation at the town level. Always confirm current town and county rates before you finalize a plan on the Town of Westlake property tax page.
What is a bridge loan?
A bridge loan is short‑term financing that helps you buy a new home before you sell your current one. It is typically secured by your existing home and paid off when that home sells. Learn the basics in Bankrate’s bridge loan overview.
Typical terms and structure
- Term length commonly runs 6 to 12 months.
- Many are interest‑only during the term with a balloon payoff at maturity.
- Lenders often cap total loan‑to‑value around 70 to 80 percent, depending on your profile. See common structures and LTV expectations in LendingTree’s explainer.
Costs and speed
- Rates are usually higher than standard mortgages, often in the mid‑single to low‑double digit range.
- Origination and closing costs commonly land around 1 to 3 percent, plus appraisal, title, and insurance.
- Many bridge loans can close faster than a traditional mortgage, which helps when you need a quick, non‑contingent offer. Cost details are covered in LendingTree’s guide.
Two common variations
- First‑lien bridge: pays off your current mortgage and replaces it with the bridge loan.
- Second‑lien bridge: adds a short‑term second loan, so you carry two payments until you sell. Learn how these differ in LendingTree’s overview.
Key risks to plan for
- Higher carrying cost if your old home takes longer to sell.
- Possible double payments with a second‑lien setup.
- Appraisal and market risk that can affect approval and loan size. See considerations in Bankrate’s guide and LendingTree’s explainer.
Buy‑before‑you‑sell alternatives
You have several ways to unlock equity or protect your purchase timeline without a bridge loan.
HELOC or home equity loan
If you have strong equity, a HELOC or home equity loan can fund your down payment at commonly lower rates than a bridge loan. Underwriting can take time, so it may be less competitive in a hot market. See how these compare in Bankrate’s overview of bridge loan alternatives.
Cash‑out refinance
You can replace your current mortgage with a larger one and pull cash out for the next purchase. This can lower long‑term cost but changes your mortgage terms and timeline. Review pros and cons in Bankrate’s bridge loan explainer.
Make your purchase contingent on your sale
Texas uses a standard TREC addendum to make a purchase contingent on selling your current home. This is safe but often less competitive in Westlake’s tighter segments. Read the form details on the TREC Addendum for Sale of Other Property by Buyer.
Negotiate a sale‑leaseback
If you must sell first, you can negotiate a short leaseback to stay in your home while you secure the next one. Your agent will document terms in the contract package.
Modern trade‑in programs
Some companies offer structured buy‑before‑you‑sell solutions designed for non‑contingent offers.
- Homeward Buy‑Before‑You‑Sell: Homeward buys your next home in cash, you move in as a renter while your old home is listed, then you buy the new home back once your old home sells. Expect a convenience fee and prorated carrying costs while Homeward holds the property. Explore program details on Homeward’s product page.
Program availability, fees, and size limits vary. Always review contracts and confirm that program limits fit Westlake price points.
Texas specifics you should know
Licensing and consumer protections
Texas regulates residential bridge loans and related home loans under state law. Verify that any lender or program is licensed in Texas using the Texas SML licensing page and review the state definition of bridge loans in Texas Finance Code Chapter 343.
Contract tools and timelines
Purchase loans typically take about 40 to 50 days to close, while cash offers can close faster. In multiple‑offer situations, speed and certainty matter. See average closing times summarized by CNBC. Your agent may also use TREC addenda such as the Third Party Financing Addendum, the Buyer’s Temporary Residential Lease, or a Seller leaseback to protect your timeline.
Homestead and property taxes
Homestead exemptions apply to your principal residence and require an application with the local appraisal district. Timing your move can affect your exemption status. Review guidance from the Texas Comptroller and confirm current rates on the Town of Westlake property tax page.
Capital gains at sale
If you qualify under federal rules, you may exclude up to $250,000 of gain, or up to $500,000 for certain married couples, when selling a principal residence. Learn more in IRC Section 121. Consult your tax advisor on high‑value transactions.
How to choose the right path
Use this quick framework to compare options:
- Define your priority: speed, total cost, or maximum certainty.
- Price your current home realistically and prepare it to sell quickly with professional staging and pre‑sale readiness.
- Get written quotes for a bridge loan, a HELOC, or a trade‑in program. Compare fees, rate, timeline, and program limits against Westlake prices.
- Confirm days to fund, whether a balloon applies, and your payment schedule.
- Verify lender or program licensing in Texas.
- Model a slower sale scenario so you know your carrying costs and runway.
- Align your contract strategy with TREC forms to protect your timing.
Ready to map a smooth move in Westlake? With concierge preparation, curated vendor support, and smart contract strategy, you can buy confidently and sell for top value. For a tailored plan, connect with Denise McCormick (TX).
FAQs
Will a bridge loan help me win a home in Westlake?
- It can, because it lets you write a faster, non‑contingent offer, but approval limits, costs, and timing must fit Westlake price points and your finances.
How much does a bridge loan usually cost in Texas?
- Expect higher rates than standard mortgages plus about 1 to 3 percent in origination and closing costs, along with typical appraisal and title fees.
What is safer, a bridge loan or a buy‑before program?
- Safety depends on your goals, since bridge loans keep both homes in your name with interest and possible double payments, while trade‑in programs charge fees but can provide more certainty.
Do buy‑before programs affect my Texas homestead exemption?
- A change in primary residence or timing can affect your exemption, so review Comptroller guidance and check deadlines with the appraisal district before you move.
What protects me if my old home does not sell?
- In Texas you can use the TREC Addendum for Sale of Other Property by Buyer to make your purchase contingent on selling your current home.
How long does a financed purchase usually take to close?
- Many financed purchases take about 40 to 50 days to close, while cash options or trade‑in programs can often close sooner.
