Editor's note: This is the first of a six-part series on home ownership in Burke County.
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MORGANTON -- Before you spend your tax refund, consider using it to start your search for a home.
“Using your tax refund to help with purchasing a home is a terrific investment,” said SuAnne Thompson, a mortgage banker at First Citizens Bank.
The money can help prospective home buyers get pre-approved, could go toward a down payment on the home or to closing costs or can be used to furnish the home.
Investing your tax refund into homeownership will give you value in the long run, said said Sara Vella, manager of the North Carolina State Employees Credit Union branch on Enola Road. And if you already had the goal of homeownership, using your tax refund could help you achieve that goal.
Saving your tax refund can serve as the beginning of your search for a home, said Thompson. Those funds could get you pre-qualified and you could begin looking for a home.
Thompson recommends saving your entire refund in a checking or savings account, despite how tempting it is to spend the money.
A lender can consider that money a reliable source of funds when pre-qualifying or pre-approving you, said Thompson.
Being pre-qualified or pre-approved is an indicator to Realtors that a buyer has done some leg work and may be qualified to buy a home, said Thompson.
Even if your refund isn’t large, it can still help, said Vella.
Down payment assistance programs can minimize the amount of a down payment, said Vella, sometimes down to as little as $500.
And making a down payment could lead to a more favorable interest rate from lenders, said Vella.
“There are always going to be expenses when you move into a home,” said Vella. “It’s good to have a bit of an emergency fund for the unexpected particularly when going from renting to home ownership.”
Learn more at www.togetherwecanmoveyou.com.
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