If you're getting ready to retire or have recently retired, downsizing might be a great idea to help lower your costs. Smaller homes generally have reduced energy and maintenance expenses. Additionally, you may have accumulated enough equity to support your transition. If you're considering a move to a smaller home, let's discuss your objectives and explore the available options in our local market.

““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.”
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— Credit Karma

While the amount you might receive in a tax refund can differ, it's nice to have a rough estimate of what to expect. According to CNET, here's the scoop on the average boost folks are experiencing 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.”
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— CNET

Sounds good, doesn't it? Just keep in mind that your refund amount may vary. But if you do receive a refund, here are some ideas on how to use it towards the purchase of a home. As outlined by Freddie Mac:

• Saving for a down payment – Saving up for a down payment can be one of the trickiest parts of becoming a homeowner. One way to speed up reaching your savings target is to put your tax refund towards it.

• Paying for closing costs – Closing costs are payments due at the closing of a home purchase, usually ranging from 2% to 5% of the total home price. You might consider using your tax refund to help cover these costs.

• Lowering your mortgage rate – Have you heard about the possibility of buying down your mortgage rate through your lender? If you find current rates and home prices challenging in terms of affordability, you might want to consider exploring this opportunity. By qualifying for this option, you could make an upfront payment to secure a lower rate on your mortgage.

When you're gearing up to purchase a home, the smartest move is to team up with reliable real estate professionals who truly get the whole buying process and can guide you on what steps to take to get prepared for your purchase.

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