The one thing many people look forward to during tax season is their tax refund. Chances are you might already have ideas on how you want to spend your tax refund, such as by taking a vacation or purchasing a new car.
However, for 2022, our team at Journey Home Lending wants to offer another suggestion on how to possibly utilize your tax refund this year—toward a new home.
Put Your Tax Refund Toward a New Home
Have you been dreaming of a new home? Perhaps you are looking to finally become a first-time homeowner this year. Either way, your tax refund could help be the first step toward owning a new home in 2022.
If you are serious about homeownership this year, then consider using your tax refund in one (or more) of these ways that can get you the keys to your new home faster:
First, you could use your tax refund to pay down debt. If you have a high amount of debt, it may keep you from getting the mortgage you need to make a home purchase, or it could cause you to receive a higher interest rate or less favorable terms.
That’s why, if you have a good amount of debt in your name, you might want to use your tax refund toward your debt.
Second, you could use your tax return as part of your down payment. While many professionals recommend putting at least 20% toward the down payment on a new home, the minimum down payment for an FHA loan is only 3.5%. The more you put toward the down payment, the less you’ll need to finance in the long run.
Finally, when it comes to the purchase of a new home, a tax return can help to cover any of the costs associated with finalizing the purchase, such as closing costs or home inspection fees.
As you can see, a tax return can be an asset to anyone looking to purchase a new home in 2022. How do you plan on using your tax refund this year?
Are you ready to move into a new home? Visit our website to learn how the team at Journey Home Lending can lend a helping hand.
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