Tax Return Season - Uses Towards Your New Home Purchase

So writing a blog is still new to me. I may have underestimated the frequency needed for most readers. How often do you read blogs? Everyday, every week, or every month? Let me know in the comments below.

 It's officially tax season and I'm so excited! Tax season is the time period in which the real estate market typically picks up. More buyers hit the market because they can utilize their returns to help contribute to their downpayment. 

Now I am in no way prepared just yet to file. However I did set an appointment with my accountant, I just need to do all the preparations. ( Which seems to take forever for entrepreneurs ) so to all the accountants out there in the world, I apologize in advance on behalf of all the self-employed. I apologize for all the receipts you must got through and any other turmoil you may experience just to file our returns. I thank you from the bottom of my heart. You are greatly appreciated!

Did you know there are many other ways to utilize your tax return towards your new home purchase besides using it as extra money for a downpayment? Today I'm going to share with you some information on utilizing your tax refund to help buy a home. I've helped clients realize their buying power with just a few of the tips I've shared below. Another reason why you should hire me as your agent when purchasing a home! 😉 *small plug*

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For those of you who will receive a return during tax season it's good to know how you can make that return beneficial as a potential buyer to buy a home. Below is a list of 4 different ways to make that happen:

1. Use the funds as a downpayment

If your down payment is as big as 20% or as little as 3% down, it is often the biggest obstacle to overcome in purchasing a new home. 

2. Pay for closing costs

Not everyone is eligible for a $0 down loan program such as VA or USDA. Closing costs are the next biggest expense after a down payment. 

3. Buy down your interest rate

If your down payment & closing costs are already take care of and you intend to stay in your new home for 5 years, you may consider paying discount points to obtain a lower rate. This may save you thousands of dollars over the life of your mortgage. 

4. Eliminate Private Mortgage Insurance

If you are not paying at least 20% down, you will likely have MI (Mortgage Insurance). However, there are specific programs that allow you to pay the mortgage insurance upfront (as a one-time fee) and saving you thousands over the first few years as well as lower your payment.


*IMPORTANT NOTE* I am not a CPA or Tax Advisor. Any questions on the specifics above should be directed to your tax professional and/or the IRS website.


Works Cited
Davidson, Linda "Ask The Mortgage Expert" Real Estate & Friends. April 2015: 34

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Until next time....