Buying a home is one of the biggest financial moves that you will ever make. There are a number of issues they should be aware of, including how the costs of purchasing and owning a home will impact your overall financial planning goals.
In this checklist we cover a number of financial issues that you might want to consider when buying and owning a home, including:
- Cash flow issues to consider including the costs to maintain the home once you own it, the impact owning a home will have should one spouse need/want to quit working to raise children as well as how long your client intends to live in the home.
- Depending upon your circumstances, there might be issues around being able to qualify for the most advantageous mortgage terms. There also might be special programs fto consider, for example if you have served in the military. Additionally, there are a number of issues they need to be aware of before, during and after applying for a mortgage.
- When buying a home, there are income tax and estate planning issues to be considered, including how to properly title the home if the client is married. The size of the mortgage will also come into play in terms of the ability to deduct some or all of the interest on the mortgage.
- Ensure that they have proper life and homeowner’s insurance coverage. Depending upon the state in which the client is located, there may be state-specific issues to discuss with them.
This article represents opinions of the authors and not those of their firm and are subject to change from time to time, and do not constitute a recommendation to purchase and sale any security nor to engage in any particular investment or legal strategy. The information contained here has been obtained from sources believed to be reliable but cannot be guaranteed for accuracy.