Making the decision to invest in a home is one of the biggest financial decisions you will ever make, so it is not a decision that should be taken lightly. Too many homeowners sign up for a mortgage on their dream home and find out soon after that the financial weight of paying for their home is bigger than what their budget can handle.

Before you make the transition from renting to buying a house, there are a few loose ends to tie up as far as your budget goes so you have a little more wiggle room if something comes up. Take a look at a few bills to lower, eliminate, or handle before buying your first home. 

Student Loans

There are about 44 million student loan borrowers in the country, so you are not alone if you have some student loan debt. Even though student loan debt is common, it is something that can negatively impact your credit score when you go to obtain a mortgage. Plus, you do not want to see your student loans unexpectedly come due right after you get settled into a new home and get comfortable with your new expenses. Therefore, before you do start the process of looking for a new home, planning your budget as a new homeowner, and obtaining a budget, know where your educational debt stands and what will be expected of you going forward. 

Credit Card Debt

Credit card debt is not necessarily a bad thing. In fact, some responsible credit card payment handling can actually raise your score numbers a little and help you get a fair interest rate on your loan. However, having multiple credit cards that all hold a hefty balance can be problematic when you obtain a mortgage. It is a better idea to eliminate a few of the accounts you have by paying them off so you don't have so many small bills coming in every month. 

Old Utility Bills

This debt may sound a bit like one that doesn't matter. However, old utility bills can be problematic when you buy a new home for a few reasons. For one, these bills can negatively impact your credit score. Secondly, you will likely have to get new utility accounts when you move in. Finding out that you own a large utility bill that you have to pay before getting service to the new place can mean a major financial struggle. 

Make sure that you consider all of these bills before you start looking into home loan purchases.