Perennially, one of the largest hurdles families face on their journey to homeownership is lack of adequate down payment. While NeighborWorks Waco does partner with several local organizations to provide Down Payment and Closing Cost Assistance programs for those that qualify, we advise revisiting your budget to increase savings.

Down payments can range from around 3% to 20% (or more) of a home’s selling price. On top of the thousands of dollars necessary as down payment on a mortgage, home buyers are also expected to pay a certain amount of additional closing costs when finalizing their purchase. Closing costs can be several thousand dollars more.

That means that at the time of purchase, a buyer may need to have savings of thousands that they are prepared to pay for their home. After nearly three decades empowering families to achieve their financial goals, NeighborWorks Waco knows that it can be challenging for many families to achieve such savings.

We have come up with a helpful remedy!

Anytime a family receives an unexpected financial windfall, we encourage them to save as much as possible for a down payment on their dream home. Financial bonuses, unexpected gifts, and especially income tax refunds all make for great lump sum savings towards your financial goals.

This year, we encourage you and your family to consider saving your income tax return in preparation for homeownership.

Income tax returns can be thousands of dollars, and are often funds upon which family budgets don’t rely. Saving even one year’s income tax return prepares a family to overcome one of the most challenging hurdles on their journey to homeownership, so prepare today.