Qualifying with both homes
The current mortgage may need to remain in the debt calculation unless program rules allow another treatment.
Buy before you sell
Buying first can create flexibility, but it requires a stronger financing plan.
Some homeowners want to secure the next property before selling the current one. Whether that works depends on qualification, liquidity, available equity, reserves, and how much payment overlap you can carry.
Available equity
Equity in the current property may be useful, but it may not be accessible until sale unless another financing strategy is used.
Reserves
Carrying two properties can increase reserve requirements and post-closing liquidity needs.
Contingencies
A non-contingent purchase can be more competitive, but it also increases financial exposure.
Bridge options
HELOCs, bridge financing, securities-backed lending, or other strategies may be available depending on the borrower.
Exit plan
The current home should have a realistic sale strategy and timeline before committing to the next purchase.