The climate is also a big draw, with Arizona enjoying on average 286 sunny days<\/a>, compared to the U.S. average of 205. But there is a big difference in temperature and rainfall across this geographically diverse state, from the desert southwest to the more mountainous northern climates, so it\u2019s important to consider carefully where you want to live based on your preferences.<\/p>\n To help you navigate the ins and outs of homebuying in Arizona, we spoke with Antonio Moreno<\/a>, a top real estate agent who specializes in single family home sales throughout the Tucson, Sahuarita, and Green Valley<\/a> regions in Southern Arizona.<\/p>\n Let\u2019s dive into the steps of buying a house<\/a> in Arizona:<\/p>\n Before you start looking for homes in Arizona, you want to determine if you\u2019re ready to purchase one. Consider factors such as how long you plan to be in the area, if you have steady employment, and if you have enough money saved for not just the down payment, but for closing costs<\/a>, maintenance, property taxes, and more. Homebuyers in Arizona pay $4,701<\/a>, including taxes, on average in closing costs when purchasing a home.<\/p>\n During this time, review your credit score<\/a> and determine if it\u2019s considered excellent, good, fair, or poor. Typically, the higher your credit score, the lower your interest rate will be, which saves you money over the life of the loan. You may want to pay off any collections accounts, dispute errors on your credit report, and pay down your credit card balances before you start shopping for a home.<\/p>\n One of the overall challenges for homebuyers this year, according to Moreno, is inflation.<\/p>\n \u201cWe are seeing a little tightening in terms of credit, but we are also seeing challenges in terms of the buyer\u2019s commitment due to inflation because of how that is going to play into their monthly budget,\u201d he explains. \u201cThey may have felt comfortable with a $2,000 a month payment before, but now that is a stretch for them because of the reality of the current cost of living.\u201d<\/p>\n The median home price in Arizona is $492,000<\/a>, as of August 2022. So, expect to spend somewhere around that number depending on what part of Arizona you\u2019re purchasing in, the home\u2019s age and condition, and the size of the property, among other factors.<\/p>\n Different loan programs will require different down payment amounts, but you do not always need to put 20% down when buying a home. A survey completed by the National Association of Realtors found that first-time homebuyers put just 7% down<\/a> on average in 2021.<\/p>\n \u201cWe typically see 5% to 10% for a down payment from our buyers,\u201d Moreno notes. \u201cWe are also sometimes seeing buyers come in with additional cash to get their monthly payment in a range they are comfortable with. They are also using funds to buy down the interest rate to lower that monthly payment and save money over the life of the loan.\u201d<\/p>\n He is also seeing sellers more willing to cooperate with paying a portion of the buyer\u2019s closing costs , rather than reducing the overall price, which can help buyers as well.<\/p>\n Consider the following down payment assistance programs in Arizona:<\/p>\n Getting preapproved for a mortgage will help you determine how much you can afford, which will then inform your home search. It\u2019s always smart to shop around for the best rates and terms<\/a>, so be sure to research a few different lenders during this process.<\/p>\n You can also ask family, friends, your buyer\u2019s agent, and attorneys for mortgage lender recommendations. When choosing a mortgage lender, ask for a detailed cost breakdown, review the terms you are being offered, and compare loan types<\/a>.<\/p>\n According to the US Consumer Financial Protection Bureau (CFPB), there are three general categories of mortgage<\/a>:<\/p>\n Conventional loans<\/a>, the most popular type of mortgage loan, are loans that are not backed by the federal government. Under the conventional loan umbrella are two subcategories called \u201cconforming\u201d and \u201cnon-conforming.\u201d Conforming loans are given to buyers who fit into the qualification guidelines set by the entities Fannie Mae and Freddie Mac, who purchase loans after they are originated.<\/p>\n Non-conforming loans are for borrowers who do not fit into the guidelines set by Fannie and Freddie and are not eligible to be purchased by them \u2014 jumbo loans<\/a> are an example of this because they offer loan amounts above the limits set by Fannie and Freddie.<\/p>\n FHA loans are geared toward borrowers with lower income and have more lenient credit score and down payment requirements than conventional loans. These government-backed loans can be a great option for borrowers who meet the requirements, however, they do require mortgage insurance.<\/p>\n Similar to conventional conforming loans in this way, FHA loans have loan limits<\/a> that vary from county to county. For example, in Maricopa County, Arizona the maximum loan amount is $441,600, while in Pima County, Arizona, the loan limit is $420,680.<\/p>\n VA loans<\/b>: For veterans, service members, and surviving spouses. Loans backed by the VA<\/a> offer 0% down payments for those who qualify. Different lenders will have different requirements; however, VA-backed loans do not have a universal maximum DTI requirement.<\/p>\n USDA loans<\/b>: These loans are backed by the United States Department of Agriculture and are for lower income borrowers in \u201crural areas.\u201d To determine if the area you are purchasing in is eligible for a USDA home loan, use this eligibility map<\/a>. These loans also offer 0% down for qualified borrowers.<\/p>\n Now that you know more about preparing to purchase a house and down payments, it\u2019s time to decide where you want to live. Consider work commute times, average house prices, and things to do in each area that you\u2019re thinking about living in.<\/p>\n Arizona is divided into three major geographic regions. The Colorado plateau, home to the Grand Canyon National Park<\/a>, covers more than a third of the northern part of the state and includes the cities of Sedona and Flagstaff.<\/p>\n Just south of the plateau is the Transition Zone, a narrow strip of land featuring several of Arizona\u2019s mountain ranges and incorporating the city of Prescott.<\/p>\n The southern portion of Arizona is called the Basin and Ridge Region and includes the cities of Phoenix, Tucson, and Yuma. This area of the state is made up of several mountain ranges separated by fertile valleys that produce lettuce, melons, and citrus fruits.<\/p>\n Let\u2019s take a look at a few of the cities in these regions.<\/p>\n The city of Sedona<\/a>, located on the county line between Coconino and Yavapai counties, is best known for its spectacular vistas of red rocks and deep canyons. It enjoys a temperate semi-arid climate with temperatures in winter averaging 57 degrees while reaching an average of 97 degrees in July.<\/p>\n One of the most expensive regions in Arizona and a big tourist area, homes were selling for a median price of $946,261<\/a> as of September 2022.<\/p>\n Located in the Bradshaw Mountains at an elevation of 5,400 feet, Prescott<\/a> experiences one of the highest annual rainfalls in Arizona at 16 inches per year, with a summer wet season that gives it a more humid subtropical climate, with highs generally not exceeding 90 degrees in the summer, dropping to the 50s in the colder months. This more temperate climate makes Prescott another hotspot for tourism.<\/p>\n Home prices in Prescott are down 4% from July 2022 to August 2022, selling at a median price of $604,666<\/a>.<\/p>\n If the smaller northern towns are not to your liking, consider looking at homes in the busy and bustling \u2013 and less expensive \u2013 Phoenix<\/a> area. Although home sales have slowed in Phoenix<\/a> this year \u2013 1,606 sold in August compared to 2,311 in the same month in 2021 \u2013 prices were still up 10.3%, selling for a median price of $430,000.<\/p>\n The population of Arizona\u2019s state capitol is 1.6 million, but the larger metropolitan area, called The Valley of the Sun, is home to more than 4.8 million people.<\/p>\n But you\u2019d better love the heat! Phoenix has a desert climate with more than 100 days a year reaching 100 degrees.<\/p>\n If you like it a little bit cooler, consider Tucson<\/a> or one of the many beautiful and affordable communities surrounding this lovely city just south of Phoenix. The county seat of Pima County, Tucson is home to the University of Arizona<\/a> and is the second largest city with a population of 542,629.<\/p>\n The median home price was reported at $340,000 in August<\/a>, up more than 14% over spring of 2021. Some of the suburban areas you may want to consider include Oro Valley northwest of the city, Sahuarita south of the city, and South Tucson just south of downtown.<\/p>\n Moreno says that while demand has softened in some regions of Arizona in recent months, demand is still pretty strong in the Tucson area.<\/p>\n \u201cIn the markets we work in, there is still big demand from out-of-state buyers, especially from the east coast and Midwest,\u201d he notes. \u201cIt is especially appealing to buyers who want to get out of major cities and who are looking for more land, more space between neighbors. Tucson is not overly developed yet and a bit less expensive, so demand remains very strong.\u201d<\/p>\n Real estate agents almost always appreciate it when their clients come to them to start home shopping after getting preapproved for a mortgage. This typically means that a buyer is ready to go and can start making offers. Choose a knowledgeable agent<\/a> that specializes in representing buyers in the area you want to purchase in.<\/p>\n Your buyer\u2019s agent<\/a> will be able to help you create a wishlist<\/a>, set up viewing appointments for you, tell you more about what\u2019s going on in the neighborhood, negotiate on your behalf, and connect you with other vendors such as a title company, insurance agent, and home inspector. Real estate agents are also incredibly knowledgeable on the homebuying process as a whole and can hold your hand throughout the process to keep closing on track.<\/p>\n\n\n\n\n\n Arizona has a lot to offer its potential homeowners, from the desert of Phoenix to the mountains in Prescott. If you are looking to purchase a home, an expert buyer’s agent will be your homebuying MVP. HomeLight analyzes over 27 million transactions and thousands of reviews to connect you with the best agents in your selected homebuying area.<\/p>\n \n 1. Assess your readiness<\/h2>\n
2. Saving for your down payment<\/h2>\n
\n
3. Get preapproved for a mortgage<\/h2>\n
Conventional<\/h3>\n
FHA loans<\/h3>\n
Special programs<\/h3>\n
4. Research the market and determine where you would like to buy<\/h2>\n
![\"\"](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2022\/10\/State-Maps--775x775.png\")
<\/a><\/p>\nThe Colorado Plateau: Sedona<\/h3>\n
The Transition Zone: Prescott<\/h3>\n
The Basin and Ridge Region: Phoenix<\/h3>\n
The Basin and Ridge Region: Tucson<\/h3>\n
5. Find a local Arizona agent<\/h2>\n
![\"homelight](\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\"){kind=logo}
\n <\/div>\n \n A Top Agent Can Help You Find Your Dream Home in Arizona<\/h3>\n