What you experienced was a closing of credit lines along with other factors. NOT a paying off of debt.

Prior to buying my home, I paid off my car, and credit cards. But I keep the line of credit open and still used the cards (just paid them off in full each month incurring no debt). I had no loss of credit score and was easily able to get financing.

As long as you have proper documented income and open lines of credit, you will have no issues getting financing.