Most prospective clients think about hiring a financial planner only to assist them with retirement, but often overlook the need for guidance regarding one of the largest, if not the largest purchases, they will ever make. Making a costly mistake when buying a home can set you back financially for decades and can even lead to bankruptcy and ultimately, the loss of the home.
Some of the common mistakes I see are:
- Not having enough of a downpayment or even having no downpayment
- Not having a budget.
- Not having an emergency fund or worse, no emergency fund.
- Not having enough life insurance on each spouse.
- Not having enough disability insurance.
- Choosing the wrong type of mortgage.
- Buying more house than they can afford. HINT: Just because you're pre-approved for a certain loan amount doesn't mean you should spend it all.
I'm not suggesting that your realtor and mortgage lender aren't valuable parts of your house hunting team. Nobody is more qualified to help you find potential properties and/or sell an existing property more so than your realtor. Likewise, your mortgage lender can help you customize financing options. What I am suggesting is that you may benefit from hiring a fee-based financial planner on an hourly or project basis. That way, you have an independent advisor on your team who is not profiting directly from the transaction.
To learn more about the services I offer or to schedule a complementary phone consultation, please send me an email or visit https://www.davidiobst.com.
About the author: David is a Certified Financial Planner™ located in Bear, DE with more than 20 years of industry experience. He offers planning services via phone, video conference, and house calls. He is currently accepting clients in DE, PA, and MD.