Tax Refunds and Buying Your Next Home
Tax Day is here. April 15th is the official day that accountants all across America can breathe easier now that tax season is over. While tax refunds were down this year on the whole, some filers still managed to escape the tax process without owing anything and even getting money back. So, what happens next? Can you use your tax refunds to help you buy your next home in Asheville? Here are some things to consider.
Pay Off Debts
While the amount you got back may not be enough for a down payment or to buy a home with cash, there are some productive things you can do with the money. One important way you can use your refund is to pay down debts.
This can help improve your credit score and debt-to-income ratio so the approval process will be more satisfactory. That can help you when it comes to qualifying for a mortgage and buying your next home.
Pay Closing Costs
Tax refunds can also off-set your closing costs. Buyers are often required to bring cash for closing costs to the table, but you may not have factored these into your purchase price. You can use your refund to take a little of the edge off the experience.
Buy Down the Rate
To help make your home purchase more affordable, you can use a portion of your tax return to buy down the interest rate. That can save you thousands in interest costs over the years, and helps you qualify, by reducing your overall housing payment (and DTI), debt-to-income ratio.
Start an Emergency Fund
There will always be additional costs when you buy a home, you may just not know about them until you’ve moved in. Starting an emergency fund to help handle unforeseen situations in the future is a great way to utilize your tax refund.
Your refund can be a seed for your emergency fund, but you should also:
* Track your expenses and set aside money every month.
* Set a goal for your emergency fund.
* Only tap into it for home repairs.
* Keep the money safe and accessible.
Save for Expenses
An emergency fund isn’t the only possible savings you can start with your tax refund. You may also want to create an expense account with this money. Many experts suggest that you set aside 1% of the cost of your home per year to help you with these regular expenses.
For example, if your home cost $300,000, that’s $3000 per year. You can set aside $250 a month to go toward these costs. And you can start this with your refund.
Roll the Renovations into Your Home Loan So, you’re ready to knock out that extra wall in your house, fix the leaking roof or redo your master bathroom. Whether you’ve decided to finally build out the mother-in-law suite, install an in-ground pool or build a detached...read more
Questions About MortgagesTop 10 Questions About Mortgages So many questions about mortgages! We understand. Buying a home is an intense process and whether its your first time or fifth time, there are a lot of things you need to know before you take the plunge. We...read more
Spring Cleaning for Your Home, Your Life, and Your FinancesSpring Cleaning Tips Spring already sprung back in mid-March here in the mountains of Western North Carolina. But we still have a little spring left this May before summertime hits us with lazy, sunshine...
Living in Asheville With PetsLiving in Asheville With Pets: Money, Safety, and Entertainment Visit any brewery, or many restaurants, and you’ll quickly learn that Asheville is a pet friendly place. It’s not just our dog friends, but also cats who have a beloved spot...
Outdoor Space in AshevilleBuilding and Using Outdoor Space in Asheville While March heralds the beginning of spring in the South, winter weather can sneak in for a last hurrah any time before April. Now that we’re into the fourth month of the year, we are all itchy...
How we can help you
Although labeled an independent mortgage lender, Prime Mortgage Lending, Inc. is not a one-man operation. Zachery Adam and his Team has the support of a streamlined operation, with professionals who assist in every phase of the loan process. His team includes an appraisal vendor, loan processors, underwriters, closers and even the CEO or president if needed. When you choose to work with Zachery, you get the support of his team as well.
It’s important to Zack that he and his team are approachable and can provide assistance to home buyers who are often inundated with misinformation about the financial picture and mortgage options. In an automated culture reliant on digital communication, it’s time to put the human element back into these conversations. He could never be behind the scenes.
Today, Dan likes working with first time home buyers to help them through the often intimidating process of buying a home. In just the time he’s been with Prime Mortgage Lending, Inc., Dan has been able to work with a number of diverse products including USDA, FHA, and VA loans. This has given him great insight very quickly about the best ways to work with homebuyers.ern Appalachian city.