Buying a Home and the Economic Stimulus Payment

Millions of households in America have alreadymeans you'll take out less debt, have potentially
received or will receive an economic stimulus checklower monthly payments, and maybe even get a
from the federal government. This article answers alower interest rate.
few questions related to the stimulus check and2. Use the money to build up your savings. Some loan
provides suggestions for the homebuyer on how toprograms -- depending on how good your credit is --
use this money to your benefit when buying a home.may require you to have enough money saved to
According to the IRS, if you have a social securitycover a month or two of home loan payments.
number, filed a 2007 tax return, and earned at least3. Use this windfall to pay closing costs. Many
$3,000 last year, you may be eligible for a stimulusmortgages have fees associated with them, and
check. Payments began at the end of April and willyour stimulus payment can help cover these costs.
be sent out through July. People must file a taxPossible fees might be charged for pulling a credit
return to receive the payment, even if they are notreport, appraising the value of a home, and for title
otherwise required to file. The amount you receiveinsurance.
will not change the amount of your tax refund and is4. Use the rebate to buy furniture. As a first time
not taxable.homebuyer, or when buying a larger home, you may
Your payment will automatically be sent to you asneed to purchase furnishings. Taking advantage of
long as you qualify and file your tax return. Thethrift and discount stores can help the money go
stimulus payment will be sent to you by check unlessfarther.
you selected direct deposit on your tax return. If you5. Use the money to cover the cost of gas you use
did, the payment will be deposited directly to youras you travel around looking for the right home to
account.buy.
Now for the suggestions on using the stimulus rebateThe stimulus payment can ease the financial burden
as you purchase a home. You could:of furnishing or buying a new home. And the
1. Use the stimulus check as part of the downwonderful thing is that all you had to do to receive it
payment on your home. A higher down paymentwas file a tax return.