I'd recommend you locate and meet with a Local Mortgage Banker to get thoroughly prequalified for mortgage financing. The answer to your question lies in the prequalification.
I sat with a couple the other evening who are buying a new construction home and they had spent considerable funds to payoff credit debt before meeting with me. While I applaud the idea of eliminating a lot of monthly debt obligations as a person prepares to pay a mortgage, sometimes the money spent on that could be better used towards down payment or closing costs, or even reserves.
And if a person qualifies for a mortgage with the debt, well, the Mortgage Banker's role should be to advise the client accordingly so as to give the client the information needed to decide if that debt should be paid or not.
Consolidating multiple payments into one may reduce the amount of the total of all of the payments you presently make and could also reduce the overall amount you pay based on the total interest you're presently paying on the other payments.
This could also help raise your credit score, with paying off all of the other payments even though you still have the same amount of debt. It still shows you are a responsible debtor and may help increase your chances of being approved for a loan.
The advice of the others is spot on. If you are consolidating several high interest rate cc debts into one lower rate, that might be beneficial, but otherwise, you should focus your efforts on paying it off over the next several months and then begin saving for a down payment.
The one question I would ask is does this 5k debt prohibit you from buying a home? If it is keeping your debt to income ratio too high, then trading it for another loan will not help the situation. It will need to be paid down so your debt is reduced and brings your ratios into a qualifying range for your lender.
I can put you in touch with a couple great lenders here in Louisville if you need assistance.
I hope this helps.
Keller Williams Realty Louisville East
Best of success in buying your home,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL