This will be determined by your current situation. Some people want to use the equity that they have built up in their home on their next home’s down-payment. Because of that, then you will have to certainly sell before you buy, to get the money in hand. However, some people want to keep their current home and rent it out, especially if it is paid off. This will give them income to help offset the new home payments. While this is an option, it will affect the loan approvals and application. You should speak with your loan officer for answers to your specific questions.