First-time homebuyer guide for Arizona

Step 1: Set a budget you can live with

Lenders qualify you on debt-to-income ratio, but the right budget is the payment that still leaves room for savings, repairs, and life. Include property taxes, homeowners insurance, mortgage insurance, and any HOA dues in the monthly number, not just principal and interest.

Arizona summers also mean real utility costs. Ask sellers for a year of electric bills on homes you are serious about.

Step 2: Get pre-approved before you tour

A documented pre-approval tells you and the listing agent what you can actually close on. It also surfaces credit or income questions early, while there is still time to fix them.

Step 3: Pick the program that fits

The common first-time buyer options:

• Conventional: as little as 3% down for eligible first-time buyers; mortgage insurance can be removed later
• FHA: 3.5% down with flexible credit guidelines; mortgage insurance usually lasts longer
• VA: no down payment for eligible veterans, service members, and some surviving spouses
• USDA: no down payment on eligible properties in qualifying rural areas, with income limits

Step 4: Plan for cash beyond the down payment

Closing costs, an earnest money deposit, inspections, and moving costs all need cash. Gift funds from family are allowed on most programs when documented properly, and some sellers will contribute toward closing costs as part of the negotiation.

Step 5: Protect your approval until closing

Avoid opening new credit, financing furniture, changing jobs, or moving large undocumented sums of money between pre-approval and closing. Each one can trigger a re-review of the file.