If you’re getting a tax refund this year, here’s something to think about that money could actually help you take a step closer to buying a home.

 

It might not be something you’ve thought about yet, but it can give your savings a nice little boost right when you need it most. And whether your refund is a few thousand dollars or more, there are some smart ways to put that money to work as you get ready to buy.

 

Let’s start with the good news people are actually getting bigger refunds this year than they did last year. Based on data from the Internal Revenue Service (IRS), the average refund is up 11.1% this year.

 

 

Of course, your exact refund will be different, but any extra money helps especially while affordability is still tight.

 

So, how can you put that money to work? Here are a few smart ways to use your refund when you’re buying a home, according to Freddie Mac:

 

• Put it toward your down payment. Saving for a down payment is one of the biggest hurdles for first-time buyers, so using your refund can help you build that up faster. And the good news is, you may not need as much as you think.
• Use it for your closing costs. These usually run about 2% to 5% of the home’s purchase price, so putting your refund toward that can make things feel a lot more manageable on closing day.
• Lower your mortgage rate. You might have the option to buy down your rate, which means paying a little more upfront to get a lower monthly payment. If you’re trying to make the numbers work better, this is definitely worth asking about.

 

You Don’t Have To Figure This Out Alone

If you’ve got a tax refund coming, it’s a great time to take another look at your homebuying savings. You might be closer to your goal than you think—and even able to buy sooner than you expected.

 

A trusted real estate agent and lender can help you figure out what you need, walk you through your options, and show you how to make the most of what you already have—including your tax refund.

 

If buying a home is on your radar this year, don’t overlook your tax refund—it might be just the extra push you need to go from almost there to fully ready.

 

Curious how far your savings could take you right now? Let’s chat and put together a plan that works for you.