mortgage qualification for new home when current home not sold?


I’d like to understand (at a high level) the rules that lenders apply to qualify you for a mortgage in the following situation. You own a house that you plan to sell and are looking for a new one and would possibly use an equity loan for the down payment. Do you have to get approve for 3 mortgages at one? Do lenders use the same debt/income ratio when it is clear you plan to sell the 1st house and if so what ratio are used? Can the approval be contingent on the sale of the first house prior to buying the second one? Even if I close on the same day or close on the sell prior to buying, in all likelihood, I need to get pre-approved prior to officially selling my first home.

Any other concepts that I am missing?

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