It’s that time of year! All of the Car Dealers are shouting “Take Your Tax Refund and Buy a New Car!” Wait! Don’t Do That! The slogan for First Time Home Buyers in NC should be… Get A Tax Refund, Buy A House!
In a few weeks, it will be April 15, 2015, and your 2014 Tax Return will be due. Truth is, for many who do NOT own a home – there will be no ta refund… But if you are one of the Lucky ones, what are you doing with that tax refund?
There are borrowers we talk to who see their tax refund as “free Money” – but it’s not, it is what you over paid to the government and now you are getting it back from your non-interest bearing account.
We believe in the Dave Ramsey conservative approach to money. We suggest you take part of any “extra” cash you receive and Bank it. We suggest that you place some of your “extra” cash into an account where you are unable to touch the funds for a year and with next year’s refund put the two together to make your down payment, or pay your closing costs. That way, you’ll have money for furniture, and a lawn mower!
USDA doesn’t require a downpayment – so this is the way most of the folks we work with get into a home with very little out of pocket.
Have some Credit Boo-Boos? Then pay down or pay off those credit cards or unpaid bills. Negotiate with your creditors on pay off balances. If they agree to a lesser amount make sure you get it in writing before you send them any monies.
If you simply are NOT a Saver, you can use the Government as a forced savings account. Increase your with-holdings this year as high as you can go comfortably and then in a couple of months you will be used to the new net amount and will live within it that amount. Next year your refund will be even larger and you can buy that new home!
Remember home prices are increasing and the longer you wait the longer it will take you to own a piece of America. First Time HomeBuyers should remember that NC has a couple of programs that specifically make it easier to Get A Tax Refund, Buy A House!
For more information about First Time Home Buyer Programs in NC, please contact Steve and Eleanor Thorne, USDA Home Loan Experts 919-649-5058, Connect with us on Facebook to keep up to date on any changes to the USDA Home Loan program in NC!