Can I afford a house? That’s the question millions of people ask themselves every day.
The first step is to talk to a financial planner. These professionals need to understand your situation and goals. After looking into all those things, they let you know if you can and if you should buy a property now.
To guarantee you receive the best advice, your Financial Planner should be Fee-Only, Fiduciary, and Independent.
Let’s go over those qualities one by one.
Can I afford a house? – Find out working by with a Fee-Only Financial Planner
Fee-only financial planners receive a fee directly and only from the client.
Moreover, those fees are transparent and agreed on at the beginning.
This also means that your financial advisor will never earn a fee from selling other products to you. Simply put, you are his or her only client.
Fiduciary refers to an advisor who only works for you. Hence, they will only consider your BEST interest.
This type of financial planner must always avoid conflicts of interest. He or she should only focus on giving truly objective advice.
Independent financial planners are not tied to a brokerage firm. This way, you can be assured that they are on your team. Their motivation is to build a long-term relationship of trust with you.
How Do I Find A Fee-Only Financial Planner?
You can do a quick search online but there’s a better way to screen your candidates.
Find someone who is a member of the National Association of Personal Financial Advisors. All NAFPA members are fee-only and fiduciary financial advisors.
After you consult your financial planner, it may be time to move on to the next step – coming up with a realistic budget for buying a house.