I got this question a few times this week so I wanted to share this with you. Your potential seller can sell their house and buy another on the same day if financing is involved.
We would underwrite the entire file of the home being purchased as if the house has already been sold. We will have the file Clear to Close even with the house still not being sold. Closing package would be sent out and worked on. The fully executed Closing Disclosure for the sale would be all that was needed to fund the loan.
Sell their house in the morning, and close on their new one in the afternoon. It’s a beautiful thing!
Let me know if I can be of any help to you or your buyers.
P.S. Using the same title company for both transactions will make it easier on everyone.