Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,323 contributions
The best thing for most people is to put your existing home on the market (assuming you are planning to sell), and closing on the sale and purchase the same day. This is what happens the vast majority of the time. But if the existing house is not sold, sure, you can take out a home equity loan on that house to use for down payment, or to buy a different house, IF YOU QUALIFY. You would need to qualify for the new equity loan, any existing loan on the current home, and the new payment on the new home. This gets tough for many people, but some can pull it off. Talk to a local mortgage broker in your area for assistance on your specific situation.