Put Your Tax Refund To Good Use
With tax season coming to an end, and many people receiving a nice chunk of change, why not put it towards something to invest in yourself and the future, like a new home!
Last year, over 97 million people received an average tax refund of about $2,800. While that may not seem like a lot of money in relation to a $200,000 house, there are many things you can do with that money.
1. Closing Costs
When buying a new home, the average closing costs are around $3,700. Say you receive a $2,800 tax refund, you can cover the majority of closing costs with that amount. Ask us about closing cost incentives to help cover the rest as well!
2. Down Payment
Most conventional loans like to see a 3% down payment. On a $200,000 home, that would make your down payment around $6,000. If you received the average tax refund of $2,800 – that is almost half of the down payment needed for your new home!
3. Pay Off Debts
Maybe you’re trying to apply for a mortgage, but you have that debt hanging over your head, keeping you from getting a good rate. Put your tax refund towards paying down your debts, which will help you get approved for your dream home!
4. Keep It In The Bank
When applying for a mortgage, it’s always a good idea to show that you have reserves, or money in the bank that you can use to pay your mortgage if you temporarily lose your source of income, or have an emergency. Many lenders like seeing that you have at least 3 months of payments in your reserves in the rare case that you will need it!
5. Have Decorating Money
The most exciting part of buying a new home is making it your own! Whether that means painting the walls your favorite colors, buying new furniture, or landscaping the yard, using your tax refund towards making your house a home is another option to take some stress off your home buying experience.