Buying or selling a home? Get professional guidance before making a major financial decision. Here are some ways to get financial advice.
- Do your research
Look up firms that offer financial advice – these organizations can connect you with financial advisors who specialize in taxation, retirement, estate planning, and so on. While there are many individuals who offer financial advice, only a firm can deliver the full range of services that you might need. So look for credible organization, and work with a financial advisor you feel you can trust.
You can also get in touch with the National Association of Personal Financial Advisors to ask about fee-only planners in the area.
- Choose the right products
A financial advisor will help you plan your home purchase using the right products. Be very clear about your present financial situation, as well as your goals. Communicating these effectively to your advisor will make it easier for them to determine which products suit you.
Moreover, take note of your advisor’s pay structure – an individual who makes money off commissions instead of a flat, hourly rate might be more aggressive when it comes to hawking products you don’t really need.
- Evaluate your financial advisor’s credentials
Work with a certified financial planner (CFP), since CFPs are licensed and regulated. They are also required to take classes on all facets of financial planning. Take advantage of their extensive training, and have peace of mind knowing that you’re working with a licensed practitioner.
There are three leading certifications in the industry, including:
- Chartered Financial Analyst (CFA) – An individual with this certification is an expert on banking, financial analysis, securities, investing, and portfolio management. CFA holders undergo a lengthy and rigorous testing regimen.
- Certified Financial Planner (CFP) – Individuals are required to have a bachelor’s degree, with college-level education on personal financial planning or a similar field of study. A CFP must also have three years of experience in the industry, abiding by a code of ethics and pursuing continuous education.
- Chartered Financial Consultant (ChFC) – This certification uses the CFP’s core curriculum but individuals are not required to take a board exam or observe a code of ethics.
- Ask questions
Aside from asking them about their pay structure, you should also ask your financial advisor how they can help you get ready for a home purchase, and how they might use technology to your advantage. Ask questions about mortgage options, unless you’re making a cash offer.
- Discuss your goals
Get the most out of your consultation by discussing your goals at length. This will give the advisor a better idea of how they might assist you. Talk about how long you intend to stay in your home, whether you plan to rent out the property, or how you want to expand your real estate portfolio.
Why seek financial advice?
A financial advisor can give you a bird’s eye view of your finances, as well as help you tackle major financial decisions such as buying or investing in property. When your financial outlook is at stake, it’s crucial to have an expert on your side.
It also helps to have a workable financial plan in place before you even start looking at real estate. This will allow you make the most of your home purchase.
Once you’re ready to enter the Miami real estate market, you can call Sigal Realty at 786-797-9088 or send an email to [email protected] for assistance.