Buying a home is one of the biggest investments many Americans will make. Whether this is your first home, your latest, or an investment or vacation property, you need reliable and independent financial advice before signing a contract. And a financial planner can help. How? Here are a few key questions they will work with you to answer.

1. Is Your Down Payment Right-Sized?

Down payments can be large or they can be very small, depending on various programs and mortgage types. Should yours be bigger or smaller? How would each choice leave you financially? Or should you work on saving more? An advisor can help you test out scenarios so you can find the right size down payment. 

2. Can You Still Meet Other Financial Goals?

Buying a house is a large and important goal, but it should not be your only one. If buying the home would put you under enough financial pressure that you can't continue to save for retirement, pay off other debt, save for college expenses, or cash-flow vacations, it may not be the right time. Work out a plan with your advisor to meet all your future goals. 

3. Will You Avoid Being House Poor?

Being 'house poor' means having all your assets invested in that real estate, with not enough buffer to live a normal life and cover unexpected emergencies. Real estate is a great investment, but that investment is not liquid. It's hard to access that money quickly and inexpensively. Avoid tying up too much in your home purchase by creating a workable budget and financial plan. 

4. Which Mortgage Should You Pick?

As mentioned, there are many mortgage options to choose from. Which one is right for you? Get help from a financial professional in assessing and analyzing the pros and cons of various mortgage loans. They will offer an additional opinion, help you find the right questions to ask, and select the right terms for your needs. 

5. Is Now the Right Time?

Even if homeownership is your ultimate goal, is now really the right time? This is a deeply personal question, but an independent third party can help you answer it. The financial advisor will ask what may be hard questions for you to ask yourself. They want the best for your finances, and they have no stake in your decision. Consulting with a pro allows you to move forward — either way — with confidence. 

Where to Start

Could a financial advisor help you as you prepare to purchase a home? Find out by meeting with one in your local area today. This small investment of time and money will go a long way to ensuring a happy, stable financial future. 

Contact local financial advisors to learn more.