How Your Tax Refund Can Help You Buy a Home This Year

When you purchase a home, you will incur a handful of upfront expenses that you will want to prepare for ahead of time. These expenses include but are not limited to: down payment, inspection fee(s), appraisal fee, etc. The good news is that you can use your Tax Refund to help cover some of those expenses. SmartAsset estimates the average American will receive a $1,798 tax refund this year. The map below provides a more detailed estimate by state:

The most recent Keeping Current Matters article states: 

“According to Freddie Mac, there are multiple ways your refund check can help you as a homebuyer. If you’re getting a refund this year and thinking about buying a home, here are a few tips to keep:

• Saving for a down payment – One of the largest barriers to homeownership is saving for a down payment. You could reach your savings goal more quickly than expected by using your tax refund to help with your down payment.
• Paying for closing costs – You have to pay fees to your lender, real estate agent, and other parties involved in the homebuying transaction before you can officially take ownership of your home. You could direct your tax refund toward these closing costs.
• Lowering your interest rate – Your lender might give you the option to buy down your mortgage interest rate during the homebuying process. That means, you could pay upfront to have a lower interest rate on your fixed-rate mortgage.

The best way to prepare to buy a home is to work with a trusted real estate professional who understands the process. They’ll help you navigate the costs you may encounter as you begin your homebuying journey.”

Your tax refund could help you achieve your goal of purchasing a home this year - Let's connect and discuss your options! Fill out our contact form here and we will be in touch shortly.