Before you begin your search for a home for sale or lease in San Juan Capistrano, you should consider which is a better choice for you. While many believe buying a home to be a better long term investment, it may not be the right choice for you. Here are some questions to ask yourself before you buy.
First, are you financially secure? Experts agree that you should have a fully stocked emergency fund, typically equal to six months of living expenses. Additionally, do you have enough to cover a down payment and closing costs. First time home owners may quality for a special type of loan but it would still require 3% of the purchase price of the home. If you have a lot of debt, this may also affect your ability to qualify for a loan. To get the best rates, you will need a good credit score and low consumer debt.
Although you may qualify for a larger loan, it’s essential to calculate your monthly mortgage payment. Purchasing a home for the maximum amount allowed may make it difficult to save every month of have enough money to cover house expenses. Experts estimate setting aside about 1% of the purchase price for repairs and maintenance each year. Lastly, how long do you plan on staying in this home? If you plan on living there for at least 5-7 years, that will allow you to recoup closing cost expenses.
In some cases it does make more sense to lease a home in San Juan Capistrano instead of buying. If you are new to the area, it may be hard to commit to a house in an area that you don’t know well. It may be a good idea to lease a home and see if it is your ideal neighborhood. Typically, leasing will cost less overall. Although some rental prices may seem high, they will typically be competitive to mortgage prices but without the added expenses of maintenance and repairs. Some homes for lease in San Juan Capistrano are part of larger communities that included amenities such as a fitness center, business center, club house, pool and tennis courts.
