As March concludes and April approaches, that can only mean one thing: Christmas has come early and the gifts are going to start coming in! That is, if you’re lucky enough to have gotten a tax refund this year.
So, how are you planning on spending the extra money you’re getting from your federal or state return? Maybe you’re planning a special vacation with your family during the summer holidays, or perhaps you’ve even had your eye on an outfit or an accessory that would normally be deemed too extravagant.
There is one answer that you may not hear enough when it comes in using your tax rebate; using these new funds as down payment on a home purchase.
For many potential homeowners like you, accumulating money for a down payment is the most difficult obstacle to conquer in the world of homeownership. Buyers often resort to combining their personal savings, gifts from family members, and even the sale of assets just to come up with the amount of money needed to put in a competitive offer. One often overlooked source of down payment funds is your income tax refund, especially if you are expecting a return of several thousand dollars.
Think about it this way – your federal and state tax refund is almost like a forced savings plan; the money gets deducted from your paycheck, goes to the IRS in payment of your potential tax liability. But since most people over-withhold, they will get some of the money back in return. So, in reality, you spend the entire year saving money through your tax withholding, just as you would by saving money through other means.
However you spend the rebate money you receive from your income taxes is entirely up to you; if you’ve been planning that unique trip or dreaming of yourself in a stylish ensemble, we won’t discourage you. But when you spend your tax refund on a house down payment, you are making an investment in your future, and that’s something that is precious and priceless.
For more advice on how to use your tax refund for down payment on a home purchase, talk to your expert team at Pacor Mortgage Corp. Call us today at 773-88107744 or visit our website to learn more and get started.
