3 Ways To Use A Tax Refund Toward A Home Purchase | Holiday Builders
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For people buying a new home in today’s market, every penny counts.
Here are three ways to use your tax refund toward your home purchase.

1. Pay Down Debt

Your credit score is the single most important factor when it comes to obtaining the best rate when financing a home purchase. Pay off high interest credit cards and optimize your debt-to-income ratio. Use your tax refund to pay down debt. Every little bit helps. 

2. Down Payment

There are many choices in making a down payment in terms of the amount to put down. Each option has its consequences. Putting down less than 20% may result in paying private mortgage insurance. The decision of how much to finance is also influenced by interest rates. A tax refund is a painless way to add to your down payment stash.

3. Earnest Money Deposit

An Earnest Money Deposit is the initial deposit made demonstrating the “good faith” of the buyer in completing the home purchase transaction. A deposit of 1 to 3% of the sales price of the home is considered appropriate. A tax refund is a nice addition to your Earnest Money Deposit funds. 

Coastal Loans

Holiday Builders works with Coastal Loans, LLC, as a Preferred Lender. Coastal Loans assigns a team of professionals to facilitate your loan application process. They assist by walking you through the loan process through a series of automated and personal messages. They strive to make the process as stress-free as possible. It all begins with a customer-friendly online application. Applicants need to upload proof of income documentation, as well as tax and other asset information. Coastal Loans works closely with Holiday Builders, staying current on the varying stages of construction in order to plan for a seamless closing.