Thanks for all your comments. I understand that the safest course of
action will be to close the sale of my current house sale, get the
money in hand and then start looking for the new house and rent a
place in the meantime. But I am trying to understand what other
options are out there and what are the cost/benefit associated with
it.


Consider renting your sold house from the new owner for a month or
two. That is not atypical.


This is one possibility we are definitely going to try.

etter yet, just try to work with your buyer and get your seller (or
builder) to synchronize the closings better.

This is one thing I am very clear about. Say we have an acceptable
offer from a buyer and we make an acceptable offer to a seller. Let us
say we are successful in getting the final closing synchronised to be
within few days. Both us and the buyer have about 2 weeks to take out
our loan contingencies, that means get a loan approved. At that point
we dont have the downpayment ready. Is any lender going to give me a
loan based on the fact that downpayment will be available at closing
time from the close of the sale of the current house? Is this
completely unheard of?

Thanks.

-Dipu