Tax returns are often an exciting bonus to your bank account. Now that we’re in the middle of tax season, we expect you’ve either already received your return or should be getting it soon. As you plan how to spend or save your refund, consider putting it towards a new home! Owning real estate is a very beneficial financial move, and often times a small chunk of change, in the beginning, will pay off big time in the end! Make the most of this hard-earned money! Your tax return can work for you, whether you’re buying your first home or you’re looking for something to retire in!
A little financial planning goes a long way. These five tips could take your tax return and turn it into more in terms of equity, monthly payments or more!
One of the easiest ways to utilize your return is to save it. While that new phone or gadget may be tempting, putting that money is a savings account for a future home purchase would be more beneficial in the end. Some loans require a small percentage down & you need to be prepared when if that pertains to you. Get started & save your tax return!
Improve your credit
Take your return & pay off debts that may be negatively impacting your credit score. Improving your score will absolutely impact your mortgage rate!
Lower your mortgage rate
If the home you’re looking to purchase is a long-term location, this might be a good solution for you. Consider using your cash to pay points up front, this will bring your rate down on your mortgage. Speak with your lender to see how this would help!
Pay closing costs
Closing costs are fees paid at the end of a real estate transaction. Use your tax return towards these fees!
Upgrade your home
Whether purchasing new construction or an existing home, this would be a smart option. Have you always wanted wood floors, or granite countertops, use your tax return to purchase these! Make your home a place you love & don’t break the bank for it!
Take some time to work on a plan for your finances. Utilize what you already have, and worked hard for, to make that plan easier for your family!