Understanding Your
Credit Score

Why your credit score may be higher than Credit Karma thinks

The way that a credit score is calculated for a home purchase is different than for consumer debt.

The score for a mortgage is probably higher.

When you spend money with a credit card, you are using unsecured debt. You’re usually buying things that a bank can’t take back, like dinner.

When you buy a home, the home itself becomes a high value asset that specifically relates to the debt. This is called secured debt.

As a result of this security, your credit score will usually be higher when you want to purchase a home.

What happens if your credit is too low? 

Depending on how much time you have, we have ways to clean up your credit score. If your home purchase is a few months away, we can usually improve your credit. 

Even if your credit has serious problems, we want you to have your dream home. We can help you get on the path to home ownership.

Don’t mess up your good credit by making this simple mistake

If you are planning to purchase a home, don’t open any new charge accounts or lines of credit. Don’t co-sign anything. Don’t buy a car or get a credit card from Target. 

Even seemingly small lines of credit can have big effects on your ability to qualify for a home loan. 

If they say “it is only a soft hit,” don’t believe them. Don’t let anyone access your credit at all.

If you still have questions about not opening new lines of credit, you need to talk to your lender and get specific instructions.

Action steps

Find out how much you can borrow. , Get pre-approved as soon as possible.

to understand your 3 biggest expenses, Download this simple worksheet.

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Chris Jacobson
Chris Jacobson

I’m Chris Jacobson, a local Vallejo realtor. I love our historic homes.

Office: 707-812-1390 | Cell: 707-805-4014 | BRE 01987892

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