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 how to pay off debt to buy a house
from the first debt into the next one once it’s paid off. Strategy 2: The Debt Avalanche Method with every extra dollar you can find
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. Reducing your debt not only improves your chances
on all debts except the one with the highest interest rate. Direct extra funds toward the high-interest debt first.
This is not the time to buy a new car or finance furniture. New large debts can disqualify you mid-escrow.
Once a credit card is paid off, keep it open. The length of your credit history and your total available credit both boost your score.