Home Buying and Your Stimulus Payment
Author: BrandanHadlock,withDirectMortgage Total views: 9 Word Count: 421
Millions of households in America have already received or will receive an economic stimulus check from the federal government. This article answers a few questions related to the stimulus check and provides suggestions for the homebuyer on how to use this money to your benefit when buying a home.
If you filed a 2007 tax return, have a social security number, and earned at least $3,000 last year, you may be eligible for the stimulus payment. Payments have already started (as of the end of April) and will continue through July. You must file a tax return to receive the payment even if you are otherwise exempt from filing. The rebate does not increase your taxable income nor affect the amount of your tax refund.
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 to build the reserves required by some loans. Certain loan programs may require you to have sufficient money in savings to cover a month or two of home loan payments. The strength of your credit could play a role in determining whether or not reserves are required.
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 for furnishing your home. When buying a home, especially for the first time, you may need new furniture such as a couch, bed, or kitchen table. Furniture from a nice store can be expensive, so you may want to find your furniture at thrift stores and garage sales.
5. Use the money to cover the cost of gas you use as you travel around looking for the right home to buy.
The amount of your stimulus payment may not be huge, but it can help you buy or furnish a home. And the great thing is that you didn't have to do much to receive the money.
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