Making Your Tax Return Work For You

Making Your Tax Return Work For You

Tax season is coming to an end and by now, most of you have filed your tax return and you might be getting some money back. 

What do you have planned to do with your tax return? Pay off debt? Vacation? Perhaps a little of both? "This year, rather than spend your tax refund on a vacation, buying a new TV or some other splurge, consider investing in your future and putting it towards the down payment on your home" suggests Certainty Home Loans [1].  "With a sizable tax refund, the average American would have a decent down payment depending on which region or market you live in. The average tax refund was $2,860 for most Americans last year." states Economist Outlook [2].

They continue to say that, "[...] those between the ages of 18-34, six percent would use their tax refund to make a purchase of a car, home etc. Among those who are in the age range of 35-44, nine percent were likely to make an investment in a car or home etc. However, those ages 45-54 only planned to use one percent of their tax refund to make an investment of a car, home etc. That makes the 18-44 group the most likely to invest and possibly take advantage of using their tax refund to partake of the American dream." [2]

                                                                                                                                                                                                Click below to view homes NOW!!

Snowball Circle

You decide to apply your tax refund toward the purchase of a home. Now what? 

I strongly encourage any potential home buyer to start the conversation with a local lender. By talking with a lender, you create a financial rapport with their institution. A lender can provide free credit and debt-relief advice and help you create a PLAN to get into a home. They can, most importantly, help you decide what loan programs are best for you. Such programs include:

USDA (Rural Development) – No down payment required

VA – Usually no down payment required. Depends on entitlement amount, purchase price, and parish limit

FHA – 3.5% down paymentDown Payment Assistance. Use to offset down payment or closing costs

Conventional – 3% or more down payment

First time buyers can even get up to an additional $2,000 tax credit each year! [Team Move Mortgage, 3]

So what if you qualify for a 100% loan financing program?

DO NOT blow your tax return! Here are a few ways to be financially savvy with this extra money:

  • Use the tax refund to pay additional closing costs, inspection costs, appraisal costs, etc

  • Pay off debts to help qualify for stronger loan programs (MUST talk to a lender before paying off a debt or collection! Paying off large sums of debt while trying to qualify for a loan program can do a lot more harm than good!)

  • Keep the refund in the bank as reserves. More reserves equals better chance of approval

  • Pay down credit card balances to raise credit scores

  • Have money for furniture, curtains, or an emergency fund as a homeowner [3]

I hope this information will help you make a more sound decision when you get your hands on this additional money. If you're ready to start the home buying process, please call, text, or shoot me an e-mail. I'd love to introduce you to my lending partners, and be your trusted, real estate partner!





Ron Barden Headshot
Phone: 985-205-5783
Dated: April 8th 2018
Views: 819
About Ron: Born and raised in South Louisiana, there's nothing more I enjoy doing than helping people buy and s...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

MouthWatering Outdoor Kitchens And Surprise Their ROI Is Great - What they typically cost, and tips
Click Here To View All 1263 Homes For Sale On The Northshore - 😍Northshore Homes For Sale
Choosing The Right Home - Looking for the right home can be
Top 4 Deal Killers For Homebuyers - Falling in love is

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Barden Realty
4990 Hwy 22 #A
Mandeville, LA