HOME BUYER TIP: Determine if paying off other debts is in your best interest
In some cases, it will make sense to payoff other smaller debts to allow you to afford the right home. If your dream home is just beyond your pre approved home purchase amount you can potentially increase your home buying power by getting rid of other monthly expenses. For example, paying off the remaining balance on a car loan can free up several hundred dollars that can now be applied to your mortgage payment, thus allowing you to afford more home. You should discuss these options with your bank and agent prior to making any decisions, but if it's in your means to payoff some outlying debt the conversation is worth having.