The decision to buy a home requires careful consideration. For starters, homebuyers need to check things like prevalent mortgage interest rates and home prices in the neighborhood of choice. In addition, they should figure out whether they need to hire a realtor. So, doing some research about the key factors that can influence the home-buying decision is the first step. To help one get started, here are key things to know before buying a home:

1. Debt-to-income ratio
Financial institutions such as banks that offer mortgages usually use the debt-to-income ratio to check whether a potential home buyer will be able to afford the monthly loan repayments. Sometimes, the mortgage provider may tell homebuyers they can afford bigger loans, which can make them overextend themself by taking out a bigger mortgage than they can manage. To avoid this, it is important to learn how to calculate the actual debt-to-income ratio after taking into consideration all aspects of personal finances. Usually, the desirable debt-to-income ratio is 43%, as set by the FHA. So, the monthly housing expenses should not be more than 43% of the total monthly income. This will help lenders determine if the borrower will be able to pay the mortgage installments. Additionally, the debt-to-income ratio will also help homebuyers know what they can afford, helping them invest in a house that will not be an unmanageable financial burden in the future.

2. Purchase price and cost of living
The purchase price of a house is naturally an important thing to know, as this can help one assess if they can afford the house. Some research on current housing prices can help one set a realistic budget. While setting the budget, one must go beyond the purchase price and account for all the costs, fees, and taxes that will go into making an offer and closing the deal. One should also take into account the cost of living, especially when moving to a new area. Along with this, looking up property taxes in that area, as well as gas prices and other essentials, are also key steps. Taking all of these potential expenses and costs into consideration can help one set the right budget and then stick to it as much as possible.

3. Location of the property
The location of any property plays a crucial role in not only the cost of the house but also the kind of lifestyle and experiences one will have in that house. This is why it is important to assess the convenience of the location. For example, those who commute to work daily must ensure that they choose a location that provides easy access to the place of work. Further, homebuyers with kids or those planning to start a family should check if there are schools and daycare centers nearby. Here, the type of school can be a make-or-break factor when considering buying a house. Additionally, one might want to consider the location of the house within the neighborhood. For instance, some homeowners might prefer easy access to main roads or streets, while others may want their homes to be away from busy intersections.

4. Age of the house
One might find a house that meets all the requirements, but it is decades old. If one is not willing to renovate for financial or other reasons, it is crucial to check the age of the house. Older houses might have their own appeal and charm in terms of visual appeal and architectural style, but they might need a major improvements, upgrades, and repairs before they are ready to live in. So, if one is considering buying an older home, it is important to ensure they have enough time and budget to take on major home improvement projects. Additionally, one may have to consider the building codes that were in place when the home was built. Comparing the building codes of the home to the codes applicable now can help one get a better understanding of the state of the home.

5. Contract negotiation
Purchasing a house involves a lot of paperwork. Most of these documents are usually contracts that a buyer has to sign before making the purchase. The legal language used in the contracts can be complicated, which can make one assume that there is little to no room for negotiation or putting in their own terms in the contracts. But that is not true. Contracts can be easily negotiated, so it is not necessary to sign the given contract right away. For instance, one may want additional time to conduct and review the results of the inspection of the house. Or, one might want to waive a radon test. Additionally, one may want to buy the house subject to mortgage approvals. All of these terms and conditions can be added to the contract. To do that, one can use the expertise of a realtor and/or lawyer. The professionals can help ensure that all the terms of the contract are in favor of the buyer and that the buyer has a clear idea of what to expect while signing the contract.