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Are You Consumer Debt-Free?
But saving for a down payment isnt the only homebuying benefit of knocking out consumer debt.
Second, paying off your consumer debt will likely improve your credit score.
A high credit score improves eligibility for thebest mortgage rates.
Even though housing prices and mortgage rates are starting to ease, both are still high.
Do You Have an Emergency Fund?
These costs fall to you as a homeowner.
An emergency fund can help you avoid taking on debt to cover these expenses.
Do You Have the Reserves To Put Down on a House?
The bigger your down payment on a home, the less you better finance.
This can mean a lower, more manageable monthly payment.
It may also save you fromprivate mortgage insurance(PMI) costs.
Lenders require PMI if you finance more than 80% of a homes value.
It protects the lender if you default on your mortgage.
If you’re able to save 20%, youll have a lower mortgage payment from the start.
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