06/06/2026
Looking forward to a tax return this April? Hereโs how it can get you closer to owning your dream home! ๐ก๐ก
1. Boost Your Down Payment: Increase your down payment with your tax refund to lower monthly mortgage payments and lock in a better interest rate. A higher down payment lets you avoid Private Mortgage Insurance on a conventional loan.
2. Improve Your DTI: Paying off debts like credit cards or student loans with your tax refund will improve your debt-to-income ratio, which boosts your credit score and your mortgage qualifications.
3. Earnest Money Deposit: Use your refund for the earnest money deposit to show sellers youโre serious when making an offer. This acts as a sign of good faith and is applied towards your closing costs.
4. Cover Closing Costs: First-time buyers, donโt forget about closing costs! Your tax refund can go towards these expenses, which include homeowners' insurance, title search, and appraisals.
5. Get a Better Interest Rate: A higher credit score = lower interest rates, and clearing up debt with your refund can help. You can also consider buying points to lower your rate further, paying a bit more upfront but saving in the long run.
Remember, your tax refund can be a powerful tool in the home-buying process, providing flexibility and opening up more options for your mortgage.
Wade Dews, REALTOR
FRONTLINE Real Estate Team
[email protected]
214-356-2410
Veteran and First Responder #1 Realtor
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