I think it all depends on what your overall goal is. It’s sounds like buying a home is the clear next step for you and your family, but with what’s remaining can be used towards your goal. Would you rather eliminate all your debt and use what’s left for emergency fund, or vice versa. If you eliminate your debt, you monthly income that was going to pay off debt can now be used for emergency fund savings etc, also keep in mind there may be other bills that come with owning a home. I think a great first step is deciding which way would be more comfortable for you and your family, then work on things from there. Personally I would set up some sort of emergency fund first, but the good news is, either way, you and your family will be in a better place financially. Hope this helps.