Things to Check before Buying Home

Dear Viewers
In this video we identify the potential risk and mitigation around home buying
Buying a home is a major financial commitment, and it’s crucial to have a solid financial foundation before taking this step. Here’s why you should consider term insurance, medical insurance, and a contingency fund before buying a home:

1. *Term Insurance*
- *Financial Security:* Term insurance provides financial protection for your dependents in case of your untimely death. If you have a mortgage, term insurance ensures that your family won’t struggle with mortgage payments if something happens to you.
- *Peace of Mind:* Knowing that your loved ones will be financially secure allows you to focus on managing and enjoying your home without added stress about potential future risks.

2. *Medical Insurance*
- *Protection Against High Medical Costs:* Medical emergencies can be financially draining. Having medical insurance ensures that you’re protected against high medical expenses, which can otherwise disrupt your financial stability and affect your ability to meet mortgage payments.
- *Avoiding Financial Strain:* Without adequate medical coverage, unexpected health issues could lead to significant debt, affecting your ability to manage home-related expenses.

3. *Contingency Fund*
- *Handling Unexpected Expenses:* A contingency fund acts as a financial buffer for unexpected expenses such as home repairs, maintenance, or job loss. This fund prevents you from dipping into savings or accumulating debt when unexpected costs arise.
- *Maintaining Financial Stability:* A well-stocked contingency fund helps you maintain financial stability and ensures that you can comfortably manage both your mortgage and other financial obligations.

Why These Should Precede Home Buying
- *Ensures Financial Resilience:* Having term insurance, medical insurance, and a contingency fund ensures that you’re financially resilient and prepared for unforeseen events. This protects you from potential financial strain that could arise from buying a home.
- *Prevents Financial Overextension:* These financial safety nets help ensure that you’re not overextending yourself. It’s essential to have these protections in place so that you can manage a mortgage comfortably without jeopardizing your overall financial health.

In summary, securing term insurance, medical insurance, and a contingency fund before purchasing a home sets a strong foundation, protecting you and your family from financial stress and ensuring that you can manage homeownership responsibly.