Typically Marjory, any negative judgement would be an issue while in getting qualified. The lender you choose to do your home loan would require any judgement or collection to be paid prior to getting the loan into underwriting. The earlier paid the better. To purchase a home you should have a minimum of 4% of what you are qualified for to cover your down payment, and more to move into the home or to cover any closing costs the seller will not pay for. The amount of $2000 should be your priority so that you are comfortable with your debt and the purchasing of a home. Good luck!