Pay off loan / obtain mortgage question?

I am going to go to get pre-approved for a mortgage.

Right now, I have about 15,000 saved. I have a credit card balance of 3,700 that at 0% until June. That balance is the result of transferring a variable rate school loan that never seemed to be going down as I made payments.

Should I pay off the 3,700 credit card because that would lower my monthly expeditures, thus allowing me to be pre-approved for more? The way I see it, I’m not going to be able to avoid PMI; I’m no where close to having 20% down for what I’ll consider as homes I’m interested in, in the 130,000s.

If I pay down the loan, my monthly expenditures are less, and then I can afford more is my thinking. I don’t want to do a piggyback loan to avoid the PMI.

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