It's very hard to say without knowing where you are in the mortgage process. My first reaction is to let sleeping dogs lie. If you are now in underwriting, you may get by before it can report again. If you pay them, there is still a chance they will report it as a paid collection. A collection isnt a deal breaker per say. A new collection however, is. The amount of the collection is also important. I had 2 collections, both were over 5 years old and I closed last month with a 3.75 rate. My best advice is to be upfront with your broker/banker and they can advise you considering your timeline. Keep in mind that many companies will run your credit just before closing...mine did not. Probably because from start to finish, it took about two and a half weeks.
