Can't buy without selling

For many years now, if you owned a home and wanted to buy another one, the banks said fine.

Not anymore. Now, most borrower/buyers will not qualify for any loan if they own their current residence and it has not been sold yet. Why? Because their debt-to-income ratios are likely going to be too high for the banks' taste. So if you own a home and are thinking about moving up, or moving down, or whatever, put your current house on the market now and make any sale "subject to sellers finding home of choice and successful close of escrow of same."

Lending guidelines are changing by the day, so this may change as well.