The Options in the Key Biscayne Real Estate and Their Differences

Author: Mark Ferrer

Author: Mark Ferrer

Key Biscayne real estate market is filled with plenty of commercial and residential properties. And if you are looking for the latter, there are further options to choose from. The two most common choices, however, are traditional homes and rental properties. These two have similarities and differences. If you cant decide which is better, here are some key points that can help you.

In terms of credit score

Both traditional homes and rental property in theKey Biscayne real estate market requires a significant FICO score. If you are not in the habit of ordering your credit reports from the three crediting bureaus, you should start now and review your record for any errors and bad remarks. It is important to polish your credit score before either buying or renting a home.

Lenders will typically require you to have a good score when applying for the mortgage of your Key Biscayne real estate property; and landlords will always do a background check on your financial health which will include a look into your credit score. If you are not ready, you might just miss your chance at a good rent or purchase.

In terms of debt-to-income ratio

The debt-to-income ratio is probably unique to traditional homes homebuyers. The lenders are the ones who will use this ratio to gauge your risk-level. Since now that rates are going down, lenders are typically getting risk-averse when it comes to whom they will bestow a loan. You must make sure that you are earning more than you are paying every month.

This will be easy if you compute all the debt you're paying each month and divide it by the total number of the debts; after which, compare the average amount of your monthly debt payment against your monthly income. If the debt is closer or higher than your incomes, you might find it hard to get approved for a mortgage, since this will make you a high-risk borrower.

In terms of future plans

Another area where the traditional homes and rental properties in the Key Biscayne real estate market differs is with your plans in the immediate future. You shouldnt take up the challenge of homeownership if you only plan to live in the city for less than five years. Instead, opt for a rental home, which you can lease either on a monthly or short-term basic usually lasting for a couple to three years.

Mark Michael Ferrer

Key Biscayne Real EstateAbout the Author:

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