Ways To Use Your Tax Refund If You Want To Buy a KC Home

Have you been saving to buy a home in the Kansas City area? Buying a KC home involves a considerable number of expenses – from down payment to closing costs. Fortunately, tax refunds can help many Kansas City homebuyers with affordability this spring. As Credit Karma explains:

“If one of your goals is to stop renting and buy a home, you’ll need to save up for closing costs and a down payment on the mortgage. A tax refund can give you a start on the road to homeownership. If you’ve already started to save, your tax refund could move you down the road faster.”

The amount of money in your tax return will vary based on several factors, but it can be encouraging to know what’s possible. CNET says this about the average increase buyers across the nation are seeing this year:

The average refund size is up by 6.1%, from $2,903 for 2023's tax season through March 24, to $3,081 for this season through March 22.”

Remember, every household will be different, but let's look at a few examples of how to use your refund when purchasing a home in the KC area. According to Freddie Mac:

  • Save for a Down Payment - Setting aside enough money for a down payment can be a game-changer when preparing for homeownership. Reach this significant savings goal even quicker by using your tax refund to help.

  • Pay for Closing Costs - These expenses are payments made at the sale closing and generally average between 2% and 5% of the home's total purchase price. Direct your tax refund toward these closing costs to ease the final portion of your homebuying process.

  • Lower Your Mortgage Rate—Your Kansas City lender might offer you the option to buy down your mortgage rate. This option may be worth exploring for those who find affordability tight in the current KC housing market rates and home prices. Qualifying for this option could mean paying upfront for a lower rate on your mortgage.

The trusted real estate professionals at Just Say Home KC can help you evaluate your budget and homebuying goals to determine the best use for your tax refund. These experienced Kansas City agents will walk you through every step of the homebuying process and ensure you are confident in this milestone decision.

Bottom Line

Your tax refund can help you reach your savings goal to purchase a home in the Kansas City area. The Just Say Home KC real estate experts can help you evaluate your finances and homebuying goals to determine if the dream of KC homeownership is within your reach.

Post a Comment