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Buying home nearby before selling current home - handling equity vs down payment

North Carolina. Private residence.

We're looking to up size and our current home is well below what the bank told us we could afford 5 years ago when we bought. We haven't gone through pre-approval yet with any lenders but we're not worried (excellent credit, low DTI, high stable income through 2 solid careers).

We currently have about $75k in equity in our home. We have something like $15k in cash at the moment, though. $250k net worth including the home equity. Mostly retirement plans and some in roths/brokerage accounts in index funds.

My question is, assuming we'll be approved (if we were buying today with no home the bank would approve us to buy up to an amount well beyond the value of our current residence plus this one we're looking at) to purchase a second property that will be significantly more than our current but still well below our means when we ultimately sell our current residence, how can I handle moving the equity from the primary residence (minus real estate commission and other fees) to be applied as a down pmt on the second home? I really don't want to have to drain a bunch of account to only go back after the sale of our current home and put money back in.

Could we plan to put down some small (5%) down pmt on the second home with PMI and then within a few months after selling (if all goes well) we could put down enough to cover 20% equity and cancel the PMI? I don't want to pay PMI.

Any other better ways of going about this?

Also, I could really use some advice/insight for NC mortgage loans where we could take advantage of the fact that my wife is a public county school employee. Are there any benefits in the mortgage finding process we should be taking advantage of?

Thanks!

submitted by /u/jkchbe
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source https://www.reddit.com/r/RealEstate/comments/cxgjrd/buying_home_nearby_before_selling_current_home/
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