Can a Home Buyer use their Tax Return to purchase a home?

There was a battle over some bad information a buyer received. A buyer agent told them, that they could not use their tax return to purchase a home. Lucky for this young couple when they told their parents, they had the couple call me. A buyer certainly can use their tax return towards their home purchase.

As we approach spring, there is an increase in First time Home Buyers who would like to purchase a home. One way they can make that dream come true, is using their tax return as a down payment. I had a couple meet me yesterday who had just this dream of purchase a Manchester NH area Home.

They were getting back about $15,000. They had said they researched online which sent them to a big company. That they filled out ample pre qual surveys from online lenders. They thought they were ready. Then they got some bad and incorrect news.

The good part for them, was they both have great jobs. They both have little to no debt.  A quick call to my favorite local and trusted loan officer, and they were pre qualified on the spot. We were told how much of a mortgage they can get. What price range we will shop in and started narrowing down neighborhoods to look in. The key was for them to document the tax return. Include copies of the bank statement showing the deposit for the IRS. We narrowed it down to 2 homes already and now to make the big choice.

Not all "walk in" buyers though are this prepared. BUT, it is easy enough if you are looking to buy now, in the near future or a year form now to get started. FIRST, speak with a local and trusted loan officer to get pre qualified. Most important for those who do not know, in case their is something on your credit, you can fix it now. Just as well it is important to know what amount you can qualify for as that determines how much you will need to save. 

The last part of preparing to buy a home is hiring a buyer agent. It is never to early to speak to a great agent. Being up front with your time line can help that agent help you. NOW, beware of the Internet. It can hurt just as much as help you. There are companies with wide nets looking to capture you as a buyer lead. They want to sell your information and before you know it, you are bombarded with agent calls. Even worse you can be pushed to sign up with just any agent, and hurt your home purchasing experience in the future. 

The moral of the story is that there is nothing like a full time local agent to help you buy a home. Start there and avoid the short cuts, schemes and Internet dreams do NOT work. 

That every Buyer or Seller should not choose just any agent, choose the BEST agent for the job. Having an agent that works for you is a must. 

My philosophy is simple, provide more personal and professional service to guide my clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. Those that hire me, find a dedication like no other.