The loan officer has the ability to evaluate the situation and decide if the loan can be approved….but your credit score will most likely be used to set the interest rate.

I am going to bet the bank will want you to pay off those old debts. If that is the case, do it very carefully…demand that they delete the entry from your records, and do NOT pay them until the very last minute. Paying off an old debt will reset the activity date on your report, causing your scores to drop. If you have a smart loan officer, they may work out a deal to include it into the closings. I’m no expert on that part…consult your bank.

once in debit and it hasnt been paid you go into collections once in there it affects it for as long as they billed is not paid and once it is paid it can take up to five years for everything to be fixed to get your credit back up to par

I do believe it all goes on your credit scoring. Your debt to income ratio and of course show them the money…Depending on how much you are putting down you may still be approved. But, more than likely your credit has been affected. I would get a free credit report. Go to freecreditreport.com most states entitle you to 1 free per year. Try and clean your credit up using that. Good luck:)