Your Tax Refund Can Help You Achieve Your Homebuying Goals

By Articles, Buying, Keeping Current Articles April 12, 2023
Piggy bank

Have you been saving up to buy a home this year? If so, you know there are a variety of expenses involved – from your down payment to closing costs. But there’s good news – your tax refund can help you achieve your goals by paying for some of these expenses.

SmartAsset estimates the average American will receive a $1,798 tax refund this year. The map below provides a more detailed estimate by state:

According to Freddie Mac, there are multiple ways your refund check can help you as a homebuyer. If you’re getting a refund this year and thinking about buying a home, here are a few tips to keep:

  • Saving for a down payment – One of the largest barriers to homeownership is saving for a down payment. You could reach your savings goal more quickly than expected by using your tax refund to help with your down payment.
  • Paying for closing costs – You have to pay fees to your lender, real estate agent, and other parties involved in the homebuying transaction before you can officially take ownership of your home. You could direct your tax refund toward these closing costs.
  • Lowering your interest rate – Your lender might give you the option to buy down your mortgage interest rate during the homebuying process. That means, you could pay upfront to have a lower interest rate on your fixed-rate mortgage.

The best way to prepare to buy a home is to work with a trusted real estate professional who understands the process. They’ll help you navigate the costs you may encounter as you begin your homebuying journey.

Bottom Line

Your tax refund can help you reach your goals of homeownership. Let’s connect to discuss how you can start your journey today.

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About the Author
Richard Wamsat
Richard Wamsat
Richard Wamsat is a Broker Associate and REALTOR with Coldwell Banker Realty in Irvine, California (CalDRE #01345167). Since 2002, Richard has represented clients throughout California in all price ranges, from first time homebuyers purchasing their first condo to seasoned investors buying and selling higher end properties. His current focus is on helping buyers and sellers in Orange County.

Richard bought his first home at nineteen and has worked in both Northern and Southern California markets, including the difficult years of the Great Recession when he negotiated with banks to help homeowners avoid foreclosure or get relief from underwater mortgages. That experience, combined with hundreds of successful closings since, gives his clients a practical understanding of how deals really get done in changing markets.

Committed to professional negotiation, Richard earned the Master Certified Negotiation Expert (MCNE) designation from the Real Estate Negotiation Institute, a member of the Harvard Program on Negotiation, along with additional credentials such as CNE, AHWD, CDPE, and SFR. Fewer than one percent of agents nationwide have achieved the MCNE designation, and Richard uses that training to structure offers, counteroffers, and terms that protect his clients’ interests without overpromising or relying on gimmicks.

Richard lives in Irvine with his wife, Brandy, and their fluffy white dog, Murphy. When you hire him, you get a calm, data driven advisor who takes the time to explain your options, walk you through the numbers, and help you make confident decisions about buying or selling a home in Orange County.