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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 the suggestions on using the stimulus rebate as you purchase a home. You could: 1. Use the stimulus check to increase your down payment. By paying more upfront, you'll have less debt; could potentially have lower monthly mortgage payments, and might be able to obtain a lower interest rate. 2. Use the money to build up your savings. Some loan programs -- depending on how good your credit is -- may require you to have enough money saved to cover a month or two of home loan 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 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 for gas. You'll probably be doing a bit of driving trying to find your dream home, and with gas prices the way they are, the stimulus payment will come in handy. 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.
Article Source: http://www.wowfreearticles.com
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