While most people dread tax time, if you are getting a tax refund, this time of year can seem almost as rewarding as end-of-the-year bonus season.
Whether you are receiving a refund of a few hundred dollars or several thousand dollars, if you’re contemplating buying your first home, here are 3 ways to use your tax refund for buying a new house.
1. Down payment: Most home loans require a down payment. Depending on what type of loan you choose, you could pay from 3.5%-20% of the purchase price. The extra money from your tax return would be very convenient here.
2. Inspection: When your purchase offer is accepted, it is strongly suggested that you hire an inspector who will check that the house is in good condition. Your tax refund dollars can help pay for inspections like wind mitigation, septic, four point, and more.
3. Closing costs: Even if you aren’t required to put any money down for the purchase price of your home, you will still have to pay closing costs. Closing costs can range between 4% and 6% of your purchase price. Your tax refund can go a long way to offsetting this necessary cost of doing business.
With a tax refund, is there a better time to buy? If you’re ready to use your tax refund to purchase your first home, contact me today to get started.