Updated 12/1/2023

Buying a home is one of the biggest financial moves that your clients 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 their overall financial planning goals.

In this checklist, we cover a number of financial issues that your clients need to consider when buying and owning a home, including:

• Cash flow issues, such as the costs to maintain the home once they own it, the impact that owning a home will have should one spouse need/want to stop working to raise children, as well as how long they intend to live in the home.
• Financing issues, including your clients’ debt ratios, qualification for advantageous mortgage terms and/or special lending programs (e.g., VA loans), and the loan application process.
• Income tax and estate planning issues, including mortgage interest deductibility, basis tracking, and how to properly title the home.
• Insurance issues, including property and casualty policies, and appropriate levels of life insurance coverage.

This is a comprehensive checklist of the types of issues that advisors should be discussing with their clients who are considering purchasing a home. Clients are not always fully aware of the financial ramifications of such a major decision, and it is your role as their advisor to ensure that they are equipped to deal with these issues, allowing them to enjoy home ownership to its fullest.