Tax Refunds

Written by Zachery Adam

April 15, 2019

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.

Typical closing costs are usually about 1% to 1.5% of the loan cost. There are other fees that your refund could help you pay, such as inspections or an appraisal fee.

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.

Prime Mortgage Lending, Inc. can help you start the process for preapproval or prequalification today. Contact us to learn more.

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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.

Zachery Adam

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.

Daniel Clancy

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.

When you apply securely online with Prime Mortgage Lending, Inc, we will contact you within 24 hours or less.

We want to be more than your mortgage lender.

The company, like Branch Manager Zachery Adam, wants to become the go-to destination for people who have questions about real estate financing and the mortgage application process. Applying for a mortgage can be a frightening process at a bank. Prime Mortage Lending, Inc. aims to keep the process simple.

Our mission is to:

  • Provide holistic mortgage planning for every customer
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  • Supply reliable services for real estate investors
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  • Inform real estate agents of the latest mortgage news

In short, Prime Mortgage Lending, Inc will provide complete, inclusive mortgage solutions that are educational, transparent, honest and sincere. No other bank or independent mortgage lender can beat the service and prices — the complete package — that Prime Mortgage Lending, Inc. offers.

 

We want to be more than your mortgage lender.

828-348-1907

Zachery@GoPrime.com

862 Haywood Road Asheville, NC 28806

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