Arizona First Time Home Buyer Loans

If you’re a first time home buyer in Arizona, you’re in a good position to buy your first home.  It may seem stressful or difficult at times, but the home purchase process is not complicated.  If you have advice and counsel from trusted professionals, you shouldn’t encounter any issues.

Arizona First Time Home Buyer Information

A home purchase is a massive investment and a significant financial decision.  If you’ve never gone through it before, it may seem daunting.  Check out our first time home buyer checklist for a detailed, step-by-step outline of the process.  As a brief overview, we’ve included some of the most crucial steps here.

• Determine your financial needs and goals.  This is the most important part of the process.  Don’t take on a mortgage you can’t afford.  The only way to know what loan amount meets your needs best is to plan and budget.
• Watch your credit score.  It’s always wise to be careful with how you use credit, but if you’re planning to purchase a home, this becomes incredibly important.  Lenders maintain very strict qualification standards.  If your credit score is bad, take the time to repair it before you pursue a loan.
• Learn about the loan options that are available to you.  There are many different loan types in the mortgage marketplace.  All of them come with unique advantages and disadvantages.  Learn as much as you can about each of them before you make a final decision.  As a first time home buyer, you should consider an FHA mortgage loan.  We discuss the FHA program in greater detail below.
• Find out what mortgage rates are available in your area.  Take the time to compare mortgage rates offered by multiple lenders.  It isn’t enough to simply ask your bank what rates they can provide.  There are many mortgage brokers in Arizona, all of whom offer different rates.  Compare mortgage rates and find the deal that best meets your needs.
• Get preapproved for the loan as early as possible.  Preapproval is an agreement made by a lender to a borrower before the official loan application has been placed.  The lender will need to review your credit score, income, and other financial factors to determine if you qualify for preapproval.

These five steps are arguably the most important steps for first time home buyers who are preparing to purchase a home.  There are other steps, though, that we don’t have time to discuss here.  Click on our first time home buyer checklist link above for additional information.

If you want a rough idea of what your monthly mortgage payment amount will be, use the following first time home buyer mortgage calculator.

1st Time Home Buyer Loan Programs

First time home buyers can take out an Arizona FHA mortgage to get their home purchase funded.  This mortgage type offers many unique benefits to borrowers who qualify, including low mortgage rates and a small down payment of just 3.5% of the purchase price.  You are required to purchase and pay for private mortgage insurance, which will cost some extra money, but the benefits may outweigh the costs if you don’t have the funds you need for a high down payment.

If you aren’t sure whether your loan amount will fit beneath the umbrella of the FHA program, check the Arizona FHA loan limits for your area.

You can find additional information about the FHA loan program on the Arizona page of the FHA website.

About Arizona

Arizona has seen significant growth both in jobs and in home ownership over the past few decades, especially around major cities such as Phoenix and Tucson.  The homeownership rate in the state is 68%. The median home price is $121,300, more than the national average, which can sometimes make purchasing your first home difficult.  Arizona is known for its breathtaking desert landscapes, and, of course, for being the home of The Grand Canyon.

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Lenders in: Arizona.