Its tax time and the weather is getting warmer. It won’t be long and the birds will be chirping and real estate listing will be falling from the sky! Spring is always a busy time of year as sellers that never want to endure another winter sell their homes, and those bundled up next to the fireplace all winter, start looking for their new home.
What else is good about Spring? …… Tax Refunds!
Using a tax refund to buy a home is a great strategy for those that have a difficult time saving money in a more conventional manor. In some cases… Like a USDA loan, no money down is needed but, if you are using an FHA/Conventional loan to buy a home you will need some money down. It is really important to document all of the details regarding your tax return in order to use the funds for a down payment on your Plattsburgh, NY home. First, keep a copy of the tax return (All Pages) to document the source of the money. The tax return will detail the amount of the tax refund you will receive. In addition, the bank will ask you to provide a copy of the bank statement that shows the tax refund deposit. All pages of all the provided statements are needed. Another, often overlooked, question the bank will ask is… Why is the deposit smaller than the amount of the refund on the tax return?? The reason this happens is that most tax preparation services have a fee and that fee is often subtracted from the refund received. So, in addition to documenting the Tax Return and Bank Statement, you will also want to document the fees charged by the tax preparation service. By doing this, the underwriter will be able to match the amount of the deposit with the refund amount. This may seem like overkill to some but by taking these steps to prepare, you can save yourself a lot of time later.
If you need help finding a home or getting prequalified, give us a call at (518) 324-5544 or request a free consultation to begin the process.