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.

Updated 12/1/2022