My-Financial Plan
Planning and Managing Your First Home
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In the past, the purchase of your first home has been something that just came naturally.
I think it is safe to say with the events of the last two years, perhaps a little sound financial planning would go
a long way toward making this major purchase just a little bit safer.
We all know now that we do not want a sub-prime loan. In fact you should
always have at least 20% down to avoid private mortgage insurance payments and unfriendly escrow accounts. There are
more mortgage options than I can possibly address but I strongly recommend that before you commit to this largest purchase
in your life, that you have an experienced and qualified financial advisor review your plans to ensure they are sound.
Finally the subject
of insurance comes up again. At this point in your Life Cycle, life insurance should also cover your outstanding mortgage
balance unless you covered this with some kind of mortgage insurance which is really just consumer debt (credit) life insurance.
When purchasing your first home, you should manage the following:
- Review the numerous mortgage options available
- Ensure you a have minimum of 20% down before considering purchase
- Have a qualified financial consultant review your mortgage/financing plan
- Update your life insurance and credit life insurance
- Ensure you have adequate home-owner and liability insurance
- Do not neglect retirement and children's education savings plans
- Update disability/income protection insurance
Life Cycle Financial Planning