Who Doesn't Love a Tax Return?

It’s exciting to know that your bank balance will get a boost from an anticipated tax refund! But remember, a refund isn’t a bonus -- it’s YOUR hard-earned money being returned to you, which is why you should make the most of it.
If you’re thinking of buying a new home this year -- whether it's your first home or the one you plan to retire in -- financial planning is critical. 
Expecting a refund? Make a bigger impact on your home purchase with these tips:

1. Lower Your Mortgage Rate: Did you know you can pay “points” up front to lower the interest rate of your mortgage? If you plan to stay in your home for a long time, this could result in significant savings over the life of your loan.

2. Pay Closing Costs: Closing costs average about 2 to 5 percent of the purchase price. Many buyers roll it into their mortgage and pay it off over the life of the loan. But you could use your refund to pay it up front and avoid paying interest.

3. Save for a Down Payment: In some cases, your refund could cover your entire down payment. Some loans only require 3 percent down, so this is more realistic than you might think.

4. Boost Your Credit Score: Paying down your debts can have a significant impact on your credit score and the mortgage rate you’ll qualify for. 

5. Update Appliances: Many buyers are tempted to open a line of credit to pay for these purchases, but that could negatively impact your mortgage loan. Using your refund is the smarter move.

6. Renovate: Homes that are a little “ugly’ and have longer days on market can be a great opportunity for you to have instant sweat equity. A little paint or a new slab of granite can be purchased with your refund and make a significant transformation in your new home. 
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Remember, a tax refund is only one factor to consider in your home buying budget. Get in touch today for a referral to a financial planner or mortgage lender if you need help preparing your budget. Let’s work together to plan your path to homeownership.