With the start of a new year bringing to mind fresh hopes and dreams, many make resolutions to work toward a goal that will improve both their present and future. With this propensity for improvement marking the beginning of 2022, as well as the season for annual tax returns, Teachers Credit Union (TCU) is promoting that people in search of their first home use their tax refunds as a down payment.
TCU Vice President of Mortgage Lending, Ryan Woodruff shared that there is a stigma that purchasing a home is a difficult process; but in reality, it is simpler than many may think. With the many programs available to help homebuyers, Woodruff said that in order to buy a $100,000 home, you may only need $3000 up front—an amount homebuyers could potentially tackle using their tax return.
“For many first-time homebuyers, their tax return is usually somewhere between $3000 and $8000, so using that money to purchase a new home is very realistic,” Woodruff said.
Many people use their tax refunds to purchase items they may not need, or at least not need right now. So, rather than taking out money to pay for these items, Woodruff urges that people consider putting that money toward buying a home.
“The reality is that money could get you into a home. Homeownership is a milestone for many people and using that tax refund wisely, could help achieve a major life goal,” Woodruff said. “Plus, getting into a new home this year could pave the way for putting your refund to great use for years to come on new furniture, or to make improvements to make the house your home in the future.”
For those still a little wary, apartments may seem like the better deal at first glance with freshly painted walls, new flooring, new carpet, and new fixtures; however, those things, may not be better in the long run. If the overall payment for a home is $100,000 with a monthly payment of $600, in the current financial climate, an apartment could have a monthly rate more like $1,200-1,300.
Buying a home is an investment, so Woodruff suggests first-time homebuyers to consider what their plans are 5-10 years from now personally and professionally to determine if purchasing a home is a realistic, worthwhile investment that lines up with their future plans.
“Don't be scared of being a homeowner,” Woodruff said. “Purchasing a home is a great long-term investment, and there are practically unlimited resources around you to help quell those fears. If you're in a situation to buy a home at 20 or 21 years old, it can certainly be the right thing to do for the long term.”
For more information about Teachers Credit Union and all the services it provides, visit https://www.tcunet.com/
