Can a financial advisor help me buy a house?

Summary 

Do you need a financial advisor when buying a house? 

Buying a home is one of the biggest financial decisions you’ll ever make.  

Not only is it a huge upfront investment that can take years of saving, but it also comes with additional financial decisions and expenses that can impact your life for years to come.  

While you may work with a real estate agent, mortgage broker, and lawyer during the process of buying a house, each of these professionals can only give you their unique take. 

Your real estate agent will show you houses within your set budget, while your broker will find you a mortgage.  

A financial advisor can give you an overall view of your finances and the impact buying a home will have. 

They can examine your financial past and look at the potential implications in the future to ensure you’re making confident and smart financial decisions.  

With house prices continuing to rise, if you’re considering buying, it’s crucial to work with an expert to get the best deal for you.  

How to choose the right financial advisor 

When choosing a financial advisor, it’s best to find one that aligns with your needs and goals. They should have experience in the field you’re looking for and act in your best interests.  

Finding the right advisor doesn’t have to be hard. 

By answering a few simple questions below, Unbiased can match you with a financial advisor best suited to meet your needs. 

This whole process is simple, fast, and secure. Better still, your first consultation is completely free.  

How can a financial advisor help when buying a house? 

When it comes to buying a house, whether it’s your first home, your forever home, or an investment property, working with a financial advisor is a good decision.  

Here are four ways a financial advisor can help you when buying a house: 

1. Saving for your down payment 

Before buying a house, you have to save up enough money to cover your down payment.  

A down payment is the amount you pay upfront for your home, with the rest covered by your home loan or mortgage. It is typically a percentage of the overall cost of the house.  

Your minimum down payment will depend on the type of loan you’re applying for. 

According to the National Association of Realtors, in 2023, the typical down payment for first-time buyers was 8%, while for repeat buyers, it was 19%. 

So, for example, if your dream home is $400,000, you will typically need $32,000.  

A financial advisor can help you crunch the numbers and develop strategies to save enough money for your down payment. They can identify where you can cut back and how you can increase your savings. 

Your down payment has a knock-on effect on how much you’ll pay in monthly repayments. If you have a bigger down payment, your loan principal is reduced which could lead to lower (and more manageable) monthly repayments. Saving the right amount is crucial.  

2. Figuring out how much you can afford 

Before you start picking out furnishings or deciding what color to paint the walls, you need to know how much you can afford to spend on your new house. There is no point in viewing homes that are beyond your reach.  

One of the key ways an advisor will add value is by offering guidance on how to improve your credit score. With a higher credit score, you will be able to access more competitive mortgage rates. 

Your advisor will also help you calculate a mortgage repayment that meets your budget and still allows you to pursue other financial goals.  

It’s also worth noting your down payment and loan repayments aren’t the only things you need to consider when buying a house. There are several other expenses you need to consider, such as lawyer fees and insurance.  

As an impartial player in the process, a financial advisor can lay out the facts and give you a realistic outlook on the type of home you can afford.  

They help you budget correctly and ensure you’re not struggling to cover costs.  

3. Choosing the right insurance 

As mentioned above, there is a lot more to buying a house than having a down payment and a mortgage.  

You also need to ensure you have the right insurance.  

Mortgage insurance, home insurance, landlord insurance (if you rent your new property), and even life insurance are just some of the options you need to consider when you buy a home.  

A financial advisor can guide you through the process of getting all the right insurance policies and ensure you’re not overpaying for coverage.  

4. Planning for the future  

You may think once you get the keys to your new house, you can put a pause on financial planning. That is not the case.  

As a homeowner, your financial responsibility increases.  

Not only do you have your monthly repayments and insurance premiums to cover, but you also still need to plan for the future. 

How much should you save each month for retirement? Are you contributing to college savings for your children? Is your investment portfolio working hard enough for you? 

A financial advisor can help you keep all your financial goals on track and ensure you don’t take your eye off the ball during big life moments. 

They integrate every part of your financial life and give you a personalized plan to help you achieve your goals. 

Get expert financial advice 

Before making any big financial decision, it’s always best to get professional advice.  

An expert can help you make informed decisions and can tailor their advice to your unique needs and goals.  

Unbiased can match you with a fiduciary, SEC-regulated financial advisor quickly and easily.  

Get started now.