In this episode of Law and Financial Order, Robyn Wolcott, CFP®, and Erin Duques are joined by Damian Cashman, Mortgage Advisor at Ascend Financial Network. Together they breakdown the financial and legal considerations that every homebuyer should understand before making an offer.
What does “PITI” stand for?
- Principal
- Interest
- Property Taxes
- Insurance
These four expenses make up your monthly housing payment and are the foundation for determining what you can realistically afford.
While lenders may approve borrowers for significantly more, this episodes explains why keeping your housing costs around 28% of your gross monthly income can help you maintain financial flexibility for vacations, hobbies, home maintenance, and everyday living.
Why Getting Pre-Approved Matters
In today's competitive market, being pre-approved is more than checking a box, it's a competitive advantage!
A strong pre-approval helps buyers:
- Understand their true budget before shopping
- Know their estimated monthly payment
- Be prepared to make competitive offers quickly
- Give sellers greater confidence that financing won't fall through
Damian also discusses how experienced mortgage advisors help buyers understand exactly what they'll need at closing, reducing surprises throughout the process.
Trusts, Estate Planning, and Your Home
Erin Duques also discusses how homeownership fits into an overall estate plan.
Topics include:
- When a revocable trust may help avoid probate
- Considerations for homes held in irrevocable trusts
- How mortgage financing works with trusts
- Planning ahead while maintaining flexibility
- Protecting your home as part of your legacy
These conversations highlight why financial planning and legal planning should work together—not separately.
Whether you're purchasing your first home, upsizing for a growing family, investing in real estate, or planning for retirement, understanding both the financial and legal aspects of homeownership is essential.
A mortgage is more than an interest rate—it's part of your overall financial picture. Taking the time to understand your options, work with experienced professionals, and create a plan that fits your long-term goals can help you buy with confidence.
If you're curious to hear more, you can listen here. Law and Financial Order - Podcast - Apple Podcasts
*Damian Cashman and Ascend Financial Network are not affiliated with or endorsed by LPL and Warner Wealth.
**Erin Duques is not affiliated with or endorsed by LPL Financial and Warner Wealth.
**Robyn Wolcott, James Warner, Warner Wealth and LPL Financial do not provide legal advice or services. This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.