A new home comes with excitement, hope—and often, a lot of paperwork. While most buyers focus on curb appeal, location, and loan approvals, few think to consult their CPA before signing a contract. That can be a costly mistake. Your CPA doesn’t just file your taxes—they understand how a major purchase like a home can affect your financial picture for years. Before you commit, there are some questions your CPA hopes you’ll ask.
How Will This Home Affect My Tax Situation?
Buying property changes more than your address. It changes your deductions, liabilities, and potentially even your filing strategy. Your CPA can help you understand how mortgage interest, property taxes, and closing costs might impact your next return. Some expenses may be deductible, others won’t be—but many buyers assume the tax benefits are greater than they actually are.
If you’re transitioning from renting, it’s important to understand how itemizing might change. You may have relied on the standard deduction in the past. After a home purchase, your deductions could shift, but not always enough to make itemizing worthwhile. Knowing where you stand can prevent surprises at tax time.
Is This The Right Move Based On My Income Structure?
Not all income is created equal when it comes to buying a home. If you're self-employed, receive commission-based pay, or rely on investment income, your lender might view you as higher risk—even if you earn more than someone on salary. Your CPA understands how your income flows and whether the home you’re considering fits comfortably within your real financial picture.
They’ll also look at your projected income and any expected changes. Are you planning to start a business? Going back to school? Having a baby? Your CPA can weigh how those shifts may affect your ability to manage a mortgage—not just this year, but over the long term.
Have You Factored In The Full Cost Of Ownership?
A monthly mortgage payment is only part of the story. Your CPA sees the full view: property taxes, homeowners insurance, private mortgage insurance (PMI), HOA dues, maintenance, and utilities. They can help you build a budget that reflects the actual cost of owning the home you’re eyeing—not just what your lender says you can afford.
Often, buyers get preapproved for the highest amount a bank will allow. That doesn’t mean it’s the right amount for you. Your CPA can run the numbers to help you determine whether the house fits your lifestyle, savings goals, and emergency fund needs.
Are You Using The Right Type Of Mortgage?
Fixed-rate, adjustable-rate, FHA, VA, jumbo—mortgage types vary widely. While a loan officer can walk you through the options, your CPA can help you evaluate what works best based on your tax bracket, long-term financial goals, and income trajectory. For instance, if you expect to move within a few years, an adjustable-rate mortgage might save you money in the short term. But if stability matters more, locking in a fixed rate could be the smarter move.
CPAs also understand the nuances of points, rate buydowns, and closing credits. They’ll explain whether it makes sense to pay more upfront for a lower rate—or whether that cash is better kept in savings.
Should I Buy In My Own Name Or Through An Entity?
This question doesn’t come up often—but it should. If you're a business owner, investor, or high-net-worth individual, your CPA may recommend purchasing through a trust, LLC, or other structure. This can offer liability protection, privacy, and estate planning advantages.
Even for everyday buyers, your CPA might suggest titling options that better protect your interests—especially if you're buying with a partner, co-signer, or family member. How the deed is titled can affect everything from taxes to future inheritance, so it's not a detail to gloss over.
Should I Sell Something First—or Wait?
Timing is everything in real estate, but it’s also critical in taxes. Selling a property, cashing out investments, or withdrawing retirement funds to cover a down payment can come with unexpected tax consequences. Your CPA can help you determine whether it’s worth selling an asset now—or whether waiting a few months would shift you into a better tax year.
For example, capital gains on a rental property or stocks might push you into a higher tax bracket. But waiting until the new year, or pairing the sale with an offsetting loss, could soften the blow. These are the types of strategies a lender won’t cover—but your CPA will.
How Much Should I Really Be Putting Down?
Putting down 20% to avoid PMI sounds appealing, but it’s not always the most financially efficient move. Your CPA can help you evaluate whether it’s better to keep some of that money liquid, especially if you have high-interest debt or limited emergency savings.
They’ll also help you understand the real cost of mortgage insurance and whether that cost makes sense when compared to investment opportunities or other uses for your cash. Sometimes paying PMI for a couple of years while preserving liquidity is the smarter move—especially in a rising market.
What Happens If My Situation Changes?
No one wants to think about worst-case scenarios, but your CPA does. Job loss, illness, divorce, market downturns—they’ve seen how life can shift quickly. Your CPA can stress-test your numbers and show you how resilient your finances are to disruption.
They may also advise you on setting up safeguards, like a larger emergency fund or additional insurance coverage, to make sure your new home doesn’t become a burden if circumstances change.
Ask Before You Sign—Not After
It’s easy to get caught up in the rush of buying a home. By the time the offer is accepted and paperwork starts moving, many buyers feel like they just have to go with the flow. But looping your CPA in early—before you lock in financing or sign on the dotted line—can help you make smarter, more informed decisions.
Buying a house is one of the biggest decisions you’ll make—not just emotionally, but financially. Your CPA can be an invaluable resource during the process, helping you navigate the numbers, avoid surprises, and think several steps ahead.
by Kate Supino
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