It’s tax season and if you’re expecting a refund this year, here are seven ways to use towards homeownership!
Use Refund To Pay Off Debt:
Lenders are more likely to approve you for a home loan when your debt-to-income ratio is low. Also, be mindful that you do need credit before you close off any lines of credit speak to a mortgage loan officer or financial advisor.
Save Refund Toward Home Down Payment:
Many first-time homebuyers overestimate the size of the down payment that they need. 5% - 10% down could be what you need to purchase your home. Many realtors would advise having a 20% down payment available to help cover costs when purchasing your home.
Use Refund Toward Earnest Money:
Saving up to 1% of the purchase price of your tax refund to be used towards your earnest money is a step closer to your homeownership goals!
Saving Towards Your Home Inspection Cost:
Use your tax refund to help with hiring a home inspector. When purchasing your home, you would want to have it inspected prior to buying. Home inspections cost range from $300 - $500. Contact Us for our list of recommended home inspectors.
Build An Emergency Savings:
Home repairs will occur, and unexpected home repairs will happen. Save your tax refund for unexpected home repairs.
Pay For Closing Costs:
During the closing, a homebuyer could pay 2% - 5% of the home purchase closing fees. Contact our agents to help you determine how much you would need to save when purchasing your home.
Save Your Refund:
Simply save your refund to build up financial reserves. The more you have saved could help you qualify for a better mortgage interest rate.
Can you use your tax refund to buy a house? You sure can! We hope you found these tips useful and be sure to contact Triple E Realty for more information. Already a homeowner? We will share tips soon on how to use your tax refund to help prepare your home to list in the Spring.
Home Buying & Selling – If you are in need of an agent to help you with your home buying needs please let us know and we can pair you with an agent.