That information is false. I can tell you from first hand experience. I am closing June 19th. I worked hard rebuilding my credit over the past 2 years and finally figuring my mid scores would be around 640 said I would app for the pre-approval even though I still had a few things to clean up. Was approved with no issues, I had a $356 CC bill from 08, 3500 CC from 08. My Lender at first said hold off on paying anything off as I was about to settle my 3500 balance.
In the end I needed to settle both debts. $150 for the $356 and $1000 for the $3500. This was however after I was already pre-approved for $250k.
Not sure what your situation far as credit scores and how old of a debt but I was fine in my case. They told me I would have no problems when I applied. Waiting for my Clear to close either today or tomorrow after I submitted my may bank statement Yesterday.
My Actual Mid was 639 Lender pull. They never repulled but after paying off both my score went up 40 points(according to credit karma).
I have had no lates/missed payments in past 4 years. Current Credit Card limits about $6k and a Car Loan for $20k.
