When I went to buy a house, the mortgage company ran the report on me and found that it showed I was in the midst of a lawsuit. The lawsuit had actually been filed several years earlier – it was a dispute over professional fees – and it was settled out of court at that time. I told my mortgage agent this, and she told me I needed to get some written documentation that the suit had been resolved. She said that neither they nor any other mortgage company would give me financing if the lawsuit were actually still pending. I realize this decision would be up to each individual mortgage company, but she seemed confident that I would be hard-pressed to find anyone willing to finance me as long as the suit was supposedly open. I presume this was because of the obvious un-quantifiable liability - i.e., they approve me for a mortgage of $x per month, which I can afford, but maybe I can’t afford it if I get a judgement against me of $500, $50,000, whatever. If the suit was settled, they could factor that debt into my financial picture and rate me accordingly, but while it is pending it is a potentially unlimited liability, so that wildcard would make me an unacceptable risk in their eyes.
Just my own experience, FWIW.