Stimulus Check and Buying a House
The federal government has already given or will soon give an economic stimulus check to millions of households in America. This article answers a few questions related to the stimulus payment and suggests ways for the homebuyer to use this income to your benefit when buying a home.
According to the IRS, people with a social security number who earned at least $3,000 last year and who file a tax return, may be eligible for the stimulus payment. Payments began in late April and will continue through July. People who normally don't file a return may still receive the payment if they file their tax return. The rebate does not affect the amount of your tax refund nor increase your taxable income.
To receive your payment, you don't have to do anything more than file your tax return. Your stimulus payment will be deposited directly into your account if you provide direct deposit information on your tax return or will be sent to you by check if you did not.
Now for those suggestions on how to use the stimulus rebate when buying a home. You could:
1.Use the stimulus payment to increase the size of your down payment. By paying cash for your home, your mortgage debt will be smaller and you could potentially lower your monthly loan payments and your interest rate.
2.Use the money as part of the reserves required for some loans. Depending on your credit and the loan program you choose, you may be required to have enough money in savings to cover a month or two of mortgage payments.
3.Use this windfall for closing costs. Many mortgages have closing costs associated with them, and while your stimulus check probably won't cover all the costs, it can sure help [it sure can help].
4.Use the rebate to purchase furnishings. When you buy a home, especially as a first time homebuyer, you may need to purchase furniture fill it. While your check might only buy half a couch from a regular furniture store, it can purchase a more by going to garage sales and thrift stores.
5.Use the money to cover the cost of gas you use as you travel around looking for the right home to buy.
Using the stimulus check for buying or furnishing a new home can ease your financial burden a little. And the great thing is, you just had to file a tax return to get it.
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Source: http://www.articlesology.com