I have fund that on web sites like that, the people are not licensed professional; they are warm-bodies, probably in a foreign country, who have a script that they are not allowed to vary from.
I would recommend that you do not pay off the CC's completely; that would end their positive input to your credit score; you want to have a small balance and pay more than the minimum each month.
There are a lot of good Mortgage people on Trulia; you will undoubtedly be answered by a few.
Good luck and may God bless
You need to sit down with a local licensed mortgage professional that can review your credit, income and assets to determine what you do qualify for and what you don't qualify for. The Pre-Approval process is one of the most crucial steps in the home-buying process and you need to be familiar with what to expect and what to ask. Take a minute to read about it here: http://www.trulia.com/blog/elliott_r_oliva/2011/12/pre-apppr
What I recommend you do is find a good real estate agent and then have that agent refer you to 3 local lenders. Preferably a mid size mortgage bank or broker and maybe a credit union.
My suggestion would be to start over. Talk to a lender live/one-on-one. A mortgage lender that will take the time to find out about your particular personal financial scenario and then work with you to place you in the most beneficial financial status for home buying. Certainly with elimination of a car loan and credit card debt, there is much positive to work with towards that goal.
I would love the opportunity to speak to you. I will not run your credit again, until I have a more clear idea of your current finances and employment and it makes sense to take that action. Together we'll decide when that should be done. Please feel free to ask me questions here ... or contact me directly.
Best of luck to you no matter your decision ...
Credit Bureaus usually take into account homebuyers usually to talk to several lenders when shopping for a loan. Interview local lenders to help you find a lending program that will work best for you. Ask your friends and family for references of local lenders that they have had a good experience working with. Check with you real estate agent to see what lenders sellers prefer in your market. Take the time to find a good lender that will help get you prepared to become a homeowner.
Prudential California Realty
If they pulled credit it will show as a inquiry, but should not negatively effect any future attempt to get a mortgage. Your best to contact a lender and talk to them about what you are looking to do. Provide them with 30 days paystubs, 2 year tax returns/W2's, 3 months bank statements, and most recent statements for any retirement accounts you may have. With this information you should be able to get a preapproval.
If you would like to talk to me personally about your situation and what you are looking to do, please call me anytime at 815-289-0880.
1st Step Mortgage Group
6876 Spring Creek Road, Suite 124
Rockford, IL. 61114