Tip Tuesday: Debt

If you have a lot of revolving debt, then consider pay it all off with your down payment money and re-save for the down. It will boost your credit score to get you a better rate and will save you interest. Banks may require you pay off your debts through escrow to close the loan.

Prioritize your debts before you buy. Come up with a six-month or one-year plan that pays down the debts with the highest interest rates first. Go into your new home as debt free as you can. A good goal is to have no debt that is not securitized by collateral. Cars are okay because you can sell the car. Credit cards are not.