We all hate it.
Every paycheck we look at our paystubs and say, “Jeez, if only I was in a lower tax bracket, imagine how much more I would take home every month!”
Yes, taxes. The necessary annoyance of any democratic civilization.
Fortunately for many Americans, when we overpay Uncle Sam every year, this actually enables us to receive the largest lump sum of cash of the year in the form of a tax return. And many people actually enjoy the fact they overpay the Man, as it can be a way of saving money if they either do not have the financial flexibility nor discipline to save on their own. If anything, it proves the old mantra “out of sight, out of mind” is usually true. And I don’t think it would be out of reason to add “out of mind, in the bank” to the end of that either.
So now that 'Tax Season' has officially begun, Americans will be contacting their tax prepares or firing up turbo tax and beginning the arduous task of submitting a tax return.
But then the fun part comes: what to spend your hard-earned tax return on? Vacation? Down payment on some new wheels?? A smart phone that actually doesn’t blow up???
At Better Home Financial we have a better, financially sounder, and even more exciting answer!
Why not buy a home?
If you haven’t purchased a home yet and you’ve been thinking about it, there may be no better time than this current interest rate climate to do so. Interest rates have been on a steady incline since Trump's taken office, and by many expert's analysis, interest rates seem extremely unlikely to begin a long term downward trend any time in the near future. Combine that with the funds from your tax return, and you may be in the best position of the year (or future years) to buy. (See also: Top 5 Factors that Determine Your Rate)
There are several options potential home owners have when deciding how best to use their cash to get them the best mortgage for their unique situation. One is paying down debts in order to receive a better interest rate on a loan, which may be the best use of your capital based on your situation. Another possibility would be putting the funds towards loan programs designed for first time home buyers, some of which include:
Conventional 97 Loan: 3% down
FHA (Federal Housing Administration) Loan: 3.5% or more down
VA (Veterans Affairs) loan: usually no money down on this type of loan, but depends on the amount entitled, the cost of the home being purchased, and the specific county limit.
USDA (That’s right, the US Department of Agriculture): No down payment required on this loan, but usually requires one to live outside of a major urban area, such as the suburbs.
To see if you qualify, check out our FREE Home Purchase Qualifier to get started!
As you can see there are several options for purchasing a home, but none of them should be decided on without help of a truly accredited financial professional. Due to the complexity mortgage calculations, and of how lenders underwrite loans, it takes expertise to know what your best home loan option is, as there is no one-size-fits-all policy or lender. Curious what your rate my be? Use our FREE mortgage calculator to get started!
At Better Home Financial, our unrivaled 30 year experience with home loans in the San Dimas area coupled with the financial intelligence of two Certified Public Accounts leading the firm guarantees we’ll find you the best mortgage solution.
We offer powerful advantages to our clients over the big banks and other brokers. No closing costs or out of pocket expenses is always a priority for us when processing loans, as is being accessible for our clients and just a phone call away if you need anything. At our offices, there’s no waiting on hold for 20 minutes on the phone, and there’s no standing in line to wait to talk to a banker that will try to sell you whatever’s most profitable for him. Here we pride ourselves in having these ethical characteristics of a small business all while providing better loans at lower rates than the corporate banks. (See also: Wholesale vs Retail Lenders: Who's Best?)
You’re not just another loan; you’re part of our community, you’re friends of our friends, and you’re part of the Better Home Financial family when you work with us.
So don’t hesitate to call us today to get prepared to make the best purchase you’ll make all year!