By Jim Probasco Updated Dec 14, 2018 If you're looking to buy your first home and are saddled with student loan debtyou may have a decision to make. Should you use your resources to pay off your student loans first, save up for a down payment or try to do both at the same time? Saving Up Mkrtgage Arguments for saving up consolidating student loans into mortgage a down payment first include. Owning a home can be less consolidating student loans into mortgage than renting and can provide emotional comfort in having your own place to fix up and remodel as you see fit. Housing prices, interest rates and the cost of renting will all likely continue to rise if you put off buying a home in favor of paying off debt.
Pay attention to your payments Simply put, lenders want to lend to financially responsible borrowers. Your payment history is one of the largest components of your credit score. To ensure on-time payments, set up autopay for all your accounts so the funds are directly debited each month. FICO scores are weighted more heavily by recent payments so your future matters more than your past. In particular, make sure to. Pay off the balance if you have a delinquent payment Don't skip any payments Make all payments on time 4.