Ways To Use Your Tax Refund If You Want To Buy a Home

<article class="post-1004207 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1004207"><span class="entry-date">April 12, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Ways To Use Your Tax Refund If You Want To Buy a Home</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Ways+To+Use+Your+Tax+Refund+If+You+Want+To+Buy+a+Home&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fways-to-use-your-tax-refund-if-you-want-to-buy-a-home%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
<div class="fb-share-button display-inline-block" data-href="https://gilliggroup.com/blog/ways-to-use-your-tax-refund-if-you-want-to-buy-a-home/" data-layout="" data-size=""><a class="facebook solid fb-xfbml-parse-ignore" data-tracking="Post,Social Post Link Clicked,Twitter" href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fways-to-use-your-tax-refund-if-you-want-to-buy-a-home%2F&amp;src=sdkpreparse" target="_blank"><span class="force-hidden">Facebook</span></a></div>
<a class="pinterest solid display-inline-block" count-layout="horizontal" href="https://pinterest.com/pin/create/link/?url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fways-to-use-your-tax-refund-if-you-want-to-buy-a-home%2F&amp;description=Ways+To+Use+Your+Tax+Refund+If+You+Want+To+Buy+a+Home" target="_blank"><span class="force-hidden">Pinterest</span></a>
<a class="linkedin solid display-inline-block" href="https://www.linkedin.com/shareArticle?mini=true&amp;url=https://gilliggroup.com/blog/ways-to-use-your-tax-refund-if-you-want-to-buy-a-home/?shareSlug%3Dways-to-use-your-tax-refund-if-you-want-to-buy-a-home" target="_blank"><span class="force-hidden">LinkedIn</span></a>
<a class="email dashicons dashicons-email solid display-inline-block" href="mailto:?subject=From gilliggroup.com: Ways To Use Your Tax Refund If You Want To Buy a Home&amp;body=Ways To Use Your Tax Refund If You Want To Buy a Home%0D%0Dhttps://gilliggroup.com/blog/ways-to-use-your-tax-refund-if-you-want-to-buy-a-home/" target="_blank"><span class="force-hidden">Email</span></a>
</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Ways To Use Your Tax Refund If You Want To Buy a Home Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20240415-Ways-To-Use-Your-Tax-Refund-If-You-Want-To-Buy-a-Home.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>Have you been saving up to <a href="https://www.simplifyingthemarket.com/2024/03/22/3-helpful-tips-for-first-time-homebuyers-infographic/" rel="noopener noreferrer" target="_blank">buy a home</a> this year? If so, you know there are a number of expenses involved – from your down payment to <a href="https://www.simplifyingthemarket.com/2024/03/25/what-every-homebuyer-should-know-about-closing-costs/" rel="noopener noreferrer" target="_blank">closing costs</a>. But did you also know your tax refund can help you pay for some of these expenses? As <em>Credit Karma</em> <a href="https://www.creditkarma.com/tax/i/what-to-do-with-tax-refund#save-to-buy-a-home" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“If one of your goals is to stop renting and buy a home, you’ll need to save up for closing costs and a down payment on the mortgage</em><strong><em>. A tax refund can give you a start on the road to homeownership. If you’ve already started to save, your tax refund could move you down the road faster</em></strong><em>.”</em></p></blockquote>
<p>While how much money you may get in a tax refund is going to vary, it can be encouraging to have a general idea of what’s possible. Here’s what <a href="https://www.cnet.com/personal-finance/taxes/average-tax-refund-amount-is-up-6-1-this-tax-season-how-much-money-filers-are-getting/" rel="noopener noreferrer" target="_blank">CNET</a> has to say about the average increase people are seeing this year:</p>
<blockquote><p><em>“</em><strong><em>The average refund size is up by 6.1%,</em></strong><em> from $2,903 for 2023’s tax season through March 24,</em><strong><em> to $3,081 for this season </em></strong><em>through March 22.”</em></p></blockquote>
<p>Sounds great, right? Remember, your number is going to be different. But if you do get a refund, here are a few examples of how you can use it when <a href="https://www.simplifyingthemarket.com/2024/03/20/does-it-make-sense-to-buy-a-home-right-now/" rel="noopener noreferrer" target="_blank">buying a home</a>. According to <a href="https://myhome.freddiemac.com/blog/homebuying/how-use-your-tax-refund-buy-home" rel="noopener noreferrer" target="_blank"><em>Freddie Mac</em></a>:</p>
<ul>
<li><strong>Saving for a down payment</strong> – One of the biggest barriers to homeownership is setting aside enough money for a down payment. You could reach your savings goal even faster by using your tax refund to help.</li>
<li><strong>Paying for closing costs</strong> – Closing costs cover some of the payments you’ll make at closing. They’re generally between 2% and 5% of the total purchase price of the home. You could direct your tax refund toward these closing costs.</li>
<li><strong>Lowering your mortgage rate</strong> – Your lender might give you the option to buy down your mortgage rate. If affordability is tight for you at today’s rates and home prices, this option may be worth exploring. If you qualify for this option, you could pay upfront to have a lower rate on your mortgage.</li>
</ul>
<p>The best way to get ready to <a href="https://www.simplifyingthemarket.com/2024/02/20/strategic-tips-for-buying-your-first-home/" rel="noopener noreferrer" target="_blank">buy a home</a> is to work with a team of trusted <a href="https://www.simplifyingthemarket.com/2024/02/28/why-you-want-an-agents-advice-for-your-move/" rel="noopener noreferrer" target="_blank">real estate professionals</a> who understand the process and what you’ll need to do to be <a href="https://www.simplifyingthemarket.com/2023/12/08/your-homebuying-adventure-infographic/" rel="noopener noreferrer" target="_blank">ready to buy</a>.</p>
<h3>Bottom Line</h3>
<p>Your tax refund can help you reach your savings goal for buying a home. Connect with a local real estate professional about what you’re looking for, because your home may be more within reach than you think.</p>
</div>
</div></article>