St. Louis, MO (PRWEB) April 24, 2013
With home buying season in full bloom, financial wellness firm, Four Seasons Financial Education, has released four tips to make your next home purchase the cornerstone of long-term financial success.
1) The best for last - When determining out how much home you can afford, try putting the mortgage payment last on the list. For example, when looking at monthly income vs. expenses, first assume you must save 10% to retirement or college savings. Then ensure you have adequate insurance such as disability or long-term care. Then comes the usual expenses such as food and car. At the end you will see how much you have left to spend on your mortgage. If you do this in reverse your home may push your retirement goals aside.
2) The team effect - If you use professionals such as a mortgage broker, real estate agent, and financial planner, ask if they are willing to work as a team to ensure you are making a wise choice with your next home. Most of these professionals would be happy to coordinate together to help you, their client. This will help ensure strong communication and review of all your options.
3) Exit strategy - Anytime you purchase a new home, think about how you may eventually sell it. Think about details that may inhibit your ability to sell it later on. Is the area changing in a negative way? Is a new highway project proposed nearby in five years? You don't want to be stuck with a property you can't sell later, so enter with an exit strategy.
4) The dreaded mortgage - If you are taking out a mortgage, you may be attracted to the thought of paying it off in 15 years. However, don't forget about the extra money it will take to pay it off in 15 years as compared to 20 or 30. This money may be needed for other goals such as retirement. Yes, you may be able to afford to save more toward retirement after the mortgage is paid off, but you may have lost 15 to 20 years in the process. Time is often one of the best assets for retirement planning. No one likes debt, but there are smart strategies for using it to your advantage long-term.
About Four Seasons Financial Education
Four Seasons Financial Education provides workplace financial wellness and education services to companies throughout the US to help them improve their bottom line. We take a strictly academic approach to financial education and focus on the core areas of personal finance which may help increase employee productivity and organizational performance. Securities and financial planning services are offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.