Your Tax Refund Could Be Your Down Payment

By Vicki Schamel

Has been a dedicated Realtor for over 30 years. She first entered real estate to balance work and raising her two young daughters, but it soon grew into a lifelong passion.

If you’re thinking about buying a home, I just saw something interesting from the IRS that I want to share with you, especially if you’re a first-time buyer working on getting pre-qualified.

It’s tax season, and refunds are coming in about 11% higher than last year. The average refund right now is sitting around $3,500. That’s a significant amount of money, and if homeownership is on your radar, I’d encourage you to think about putting that refund toward buying a home.

Add it to what you’ve already saved. If you’ve been setting money aside, adding your tax refund to that savings could make a real difference. Most first-time buyers are living on a month-to-month budget, and when the home you want feels just out of reach, that extra $3,500 can help close the gap. Can you afford a home? Absolutely. Can you save for one? Absolutely. A home builds your wealth the longer you stay in it, and it becomes more valuable to you over time.

Ask your lender about buying down your interest rate. Here’s something a lot of buyers don’t realize: you can use some of that money to buy down the interest rate on your mortgage. Not every banker brings this up, so it’s worth having a really in-depth conversation with your Realtor and your lender to see what’s best for your situation. There are different ways to make a home more affordable, and a rate buydown is one of them.

There are more options out there than you might think. Grant money has been available recently for buyers who qualify, and there are lenders who will sit down and take the time to walk you through everything from concessions to mortgage buydowns to different interest rate strategies. If you need help finding the right people, I’d love to connect you with some of the banks I know that are really working with first-time buyers right now.

Spring is coming, homes are starting to hit the market, and now is the time to get involved. I’m hoping you can use that tax refund toward something that’s really valuable to you.

If you need my help getting started, reach out anytime at 607-351-6933 or email me at vickischamel@kw.com. You can also visit fingerlakesrealestatereports.com for more information. Until next time, wishing you a great spring ahead.