May possibly buy a home before selling ours - would we qualify?

My husband and I owe $125,000 (just under $1,000 a month including escrows) on our current home which we're planning to sell but there's a possibility we may close on a new home a month or two before selling our current home. Assuming we don't sell our home first, how much would we likely qualify for on a new mortgage, and what the best way to go about it? The new home would cost around $205,000, we want to put 10% down, we currently have about 25k in cash and about $75K in retirement funds and a $225 a month car payment. Our combined gross income is about $82,000 a year and we have been at our jobs for at least 7 years. Would we qualify for this new mortgage or would we need to sell our home first? Does it make a difference that we're also selling our current home? We haven't found a house yet and are considering having one built, and wasn't sure if we should go ahead and get pre-approved based on not selling our home first (if that should happen). Our current home recently appraised for $180,000 if that helps. Thanks. by paoli._920_732 from Wake Forest, North Carolina. Jul 19th 2012 Reply