Danny gave you a great answer below. As he suggested, doing a Lease Purchase might be a good alternative for you to consider. You can also fine out more about that at the Rent to Own website below.
Owner of Group 15 Real EState
There are a lot of people in your position. If mortgage financing is not working out for you, there are some great rent to own options available. Best of luck to you. Danny Plueddemann.
I would check with your lender (I can refer you to one if you currently are not working a lender). They may advise you to pay at closing, versus before. As the first answer states, paying off may give old history a more recent date.
Best of luck to you. Let me know if I can be of any assistance - 704.649.8163
Coldwell Banker United, REALTORS
When you have a moment, give me a call. We have a relationship with a bank lender that works with a credit repair specialist that may be able to assist you. No strings attached, just trying to help. 704-491-8026.
Dwell in the possibilities,