Bad credit home loan and credit report?

I am looking to get a home loan to purchase a condo in the 20-35k range. My credit scores are 567 563 and 548. I have 5 negative open accounts on my credit report and was told that an underwriter would want those closed. should i close these accounts or should i look for another lender. i was told closing account hurts your score. I just opened up a bank account and that hurt my score. any advice on how to go about this would be appreciated. I have the money for the closing cost and down payment but would have to wait longer to get the money for the debt to be paid off. thanks in advance