Every spring brings two things: tax returns and the promise of new beginnings. While most people think of tax season as a time for filing forms and checking boxes, it can also be a chance to take a real step toward buying a home.

According to the IRS, 63% of taxpayers filing returns received refunds in 2025, and the average refund was $3,167. That amount of money can go a long way when you’re house hunting.

At Brookline Homes, we support our communities by building quality homes and sharing the lesser-known strategies savvy buyers use to buy the home of their dreams. Here are some of the ways you can use the cash from your tax refund toward your goal of buying a home.

1. Pay off existing debt

Most people take out a loan to buy a home. As a part of that process, lenders look into your household finances and credit reports to ensure you can afford the home you’re buying. 

There is only so much debt you can take on before the payments become unmanageable, and that goes for mortgages, car loans, student loans, and credit cards. Lenders measure this ability with a debt-to-income ratio. To calculate this, they divide all your existing monthly payments by your monthly income and multiply by 100%. 

Loan officers like to see a debt-to-income ratio of less than 36%. If you’re above or close to that level, paying off your current loans will help you secure a mortgage. With less debt looming over you, a home becomes more attainable.

Want to hear a lender’s perspective? Brookline has partnered with several preferred lenders who can help you understand the math. Learn more here.

2. Increase your down payment 

Your down payment is one of the most powerful levers you can turn to make your home affordable. This is money you pay immediately upon buying a home. Every dollar you add to your down payment saves you money over the lifetime of a mortgage. The greater your down payment, the less you have to finance and the less interest you end up paying in the long run.

Homeowners often spend months, if not years, saving up for a down payment. If you’ve been wondering how to save for a home within an already tight budget, your tax refund can be the perfect way to begin. If you have been saving for a while, a refund can put you over the top. What better way to start the spring season?

3. Cover all those extra costs

In real estate, we talk a lot about asking prices, interest rates, and down payments because these are usually the biggest factors that affect the math of buying a home. But there are a few miscellaneous costs that you should also take into account. 

Earnest money and due diligence

Homes are major purchases, and sellers want to know you’re serious about buying before they stop entertaining other offers. Earnest money and due diligence fees are money you put down to prove your intentions. This can amount to several thousand dollars, though they are subject to negotiation with the seller. 

Closing costs

Once an offer is accepted and it’s time to close on a home, there are many moving parts with costs that add up over time. Here are some other costs you can expect to pay for: 

• Loan application fees
• Home appraisal 
• Homeowners association fee
• Title searches 
• Real estate attorney's fee

In total, you can expect closing costs to equal approximately 2–5% of your home’s value. Depending on the size of your tax refund, you may be able to cover these costs entirely. 

4. Get a home inspection and land survey

You don’t have to have a home inspection done before you buy a home, but it is highly recommended. It’s good to know what you’re buying. 

Home inspectors evaluate a home’s structure, systems, and general condition. Once they are done, they report back to you on any flaws they see, both major and minor. This is especially helpful before purchasing a home because inspectors sometimes discover issues with a home that are not noted in disclosure documents. If there is ever a time to get a professional opinion, buying a home is it.

Similarly, it’s smart to have your lot surveyed as well. A land surveyor reviews your property and gives you a detailed analysis of the land you’re purchasing. They can help you identify where property lines and utility right-of-ways are positioned. 

Together, the cost of home inspection and land surveying can add up to $2,000 or more, which a tax refund may be able to pay for.

5. Save your back and cover moving costs

Moving can be stressful and the bigger your household is, the more there is to consider. Nearly anyone who’s ever moved will tell you that hiring professional movers is money well spent, even if it’s just for moving big furniture. 

The cost of professional movers depends on where you live, distance traveled, and how much stuff you’re bringing with you. A tax refund of several thousand dollars can often offset the cost of a local move.

When you finally move into your new home, you already have a lot on your mind from setting up utilities to decorating. If you’re close to buying a home, applying a tax refund toward moving costs can save you a big headache and help you enjoy your home from the start.

Looking for a house with tax savings in hand? Brookline Homes has many modern, turn-key homes in the Charlotte area that are worth exploring. Request information now.