Your Tax Refund Can Help You Achieve Your Home-Buying Goals

Dated: April 14 2023

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Carlo Coats' Real Estate Blog

Have you been saving up to buy a home in Phoenix 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.

According to an estimate by SmartAsset, the average American will receive a $1,798 tax refund ($1,646 average tax refund in Arizona). The map below provides a more detailed estimate by state:

Source: SmartAsset

There are multiple ways your refund 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:

* 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 with your down payment.

* Paying for closing costs - You have to pay fees to your lender, 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 home-buying 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 home-buying journey.

Bottom Line

Your tax refund can help you reach your goals of homeownership. Connect with your trusted real estate agent to discuss how you can start your journey today.

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Carlo Coats

Hi! I'm Carlo.I'm here to help you throughout your entire home-buying and selling process. Trying to do it all on your own can be burdensome. I'll find you homes within your price range, help you find....

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