During tax season, refunds help many become homeowners! In fact, tax refunds are often thought of as ‘extra money’ that can be used toward larger goals. If you’re expecting to get a refund this tax season, instead of spending it on things that you don’t need, consider using it to invest in your future! What better way to do so than using your tax refund to help you get closer to your homeownership dreams!
Check out these 5 ways that your tax refund can help you get closer to homeownership:
#1 Put it Towards Your Down Payment
We know that saving for a down payment can be a big challenge and even one of the biggest barriers to homeownership. Many people sometimes overestimate the size of the down payment they need. Often times, a tax refund may cover the entire down payment.
Tip: When you get your tax refund, you can put it in a savings account to build up a deposit fund. Keep adding to the fund and before you know it you could have the key to a new home in your hands! In fact, larger the deposit amount you put toward a new home, the less you will have to borrow and pay in interest over time.
Exactly how much of the down payment you can cover will depend on the amount you want to borrow and the percentage you’re required to put down. Depending on your credit history and other factors, there are financing options with much lower down payment requirements besides the typical 20% down. For instance, depending on the program, borrowers can make down payments between 3.5%-10%. Down payment assistance programs can also help you bridge the cash gap. Check out these programs here for more information.
Mortgage Products Available for First-time Buyers Offering Low to No Down Payments
Visit our website here for a list of our loan products!
#2 Apply it to Closing Costs:
You can even put your tax refund towards closing costs that can be incurred when buying a home such as: attorney fees, appraisal and inspection fees, title insurance, escrow costs, etc. Speak with your loan officer to learn what fees apply.
#3 Put it towards Taxes & Insurance:
After you’ve purchased your home, you may need to pay your property taxes and home insurance costs, which is where your tax refund can come into play.
#4 Use it to Cover Moving Costs:
It is possible you’ll have moving expenses to deal with such as renting a moving truck, purchasing packaging material, paying utility service deposits and more! This is a great way to utilize your tax refund!
#5 Use it to Build an Emergency Fund
Every homeowner should have an emergency fund – a savings account with a balance that can cover several months of expenses, which includes your mortgage payment. You could add your tax refund to your emergency fund to help protect you from financial issues in the case you have any unexpected expenses, such as a major car repair or natural disaster, or in the event of job loss, illness or other income interruption.
These are just a few ways that you can put your tax refund to good use! When you’re ready to explore your homeownership, options get in touch with Greenway Mortgage. We’ll help you find the best program and guide you through the entire process! Visit our website to learn more about our loan programs.
During tax season, many tax payers have more funds than any other time of the year, so there is no better time to qualify for a new home. This is a great opportunity – low rates, stable job market, and affordable homes. Why not buy a home now?
Ready to Take the Next Step?
Greenway Mortgage is here to help. Contact us today to discuss your options. 732-832-2967.