How To Pay Off Debt To Buy A House File

Note: Avoid taking out new lines of credit within 6–12 months of applying for a mortgage, as "hard inquiries" can temporarily dip your credit score. Crucial Tips for Future Homebuyers

from the first debt into the next one once it’s paid off. Strategy 2: The Debt Avalanche Method how to pay off debt to buy a house

with every extra dollar you can find.

Lenders primarily look at your —the percentage of your gross monthly income that goes toward paying debts. To qualify for most conventional loans, you generally want your total DTI (including your future mortgage) to be 36% to 43% or lower. Reducing your debt not only improves your chances of approval but can also secure you a better interest rate. Strategy 1: The Debt Snowball Method Note: Avoid taking out new lines of credit

If you have multiple high-interest credit cards, consider a or a 0% APR Balance Transfer Card . This moves several payments into one lower-interest monthly payment. Lenders primarily look at your —the percentage of