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.