Your Homebuying journey begins here.

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A mortgage payment consists of various costs such as taxes, insurance, principal, and interest. Here is a breakdown of these categories that you need to consider when taking into consideration your monthly budget:

• Principal: When you purchase a home with a monthly mortgage, principal is the portion of the mortgage payment that pays down the balance of the loan.
• Interest: The Interest is the cost of borrowing the money that is paid to the lender. 
• Property Taxes: When purchasing a home, you need to consider that you will be a property taxpayer. In Arizona, this is usually paid through the county assessor where the property is located. Property taxes are collected twice a year (October and March). Normally when you have a mortgage on your home, these amounts are collected in your "escrow" account. Escrow then includes this property tax amount in your standard monthly mortgage payment. Your exact property tax rate on your specific property will depend on where your home is located. The taxes combine state, county, municipal, school, and special district rates. 
• Homeowners Insurance: When you become a homeowner one of the most important pieces of your purchase is protecting it. The lender will also feel the same way since they are lending you money based off of a property "risk". Your homeowner's insurance monthly cost will, in most cases, be included in your monthly mortgage payment and also paid through your escrow/impounds account. Homeowners Insurance will cover damage to your property, legal liability and risk, along with making sure your personal belongings are protected. This insurance policy is decided and purchased by you, and then provided to the mortgage company by you.

When it comes to financing a home, investment property, or refinancing an existing property... it is also best to take the guess work out of it as quickly as possible. Here are the steps to take to find out if you qualify for a home or property purchase in Arizona.

1. Make sure you have a good scope of your monthly budget. Be honest and realistic about how much you can afford or what you might be already paying in rent. You can use our Mortgage Guide 2024 Download (below) as a reference point for things you should consider when budgeting for a property purchase. 
2. Visit our Mortgage Calculator to be able to put in budget home pricing with down payment estimates to see realistically what you might be looking at for your mortgage payment.
3. Get Pre-Qualified. Even if you aren't quite ready to start looking for a home, getting pre-qualified helps you take the guess work as to what you qualify for and how it works into your monthly budget. Getting pre-qualified doesn't commit you to purchasing within a time period, it is just a resource and tool that allows your trusted Loan Originating Partner a place to begin on guiding you through the process. You can start your pre-=qualification easily Here on our Pre-Qualification Application Link.

• *If you prefer to do an application over the phone, you can also contact us to do so at 520-668-7831*

Every loan program is different as to what you will need to provide for a down payment. However, here is a breakdown of standard minimum down payment options based on your qualifications:

• Conventional loan down payment amount (traditional with no mortgage insurance) = 20%
• Conventional loan minimum down payment (traditional minimum down payment) = 5%
• Conventional loans for Arizona first time homebuyer's minimum = 3%
• FHA loans minimum down payment= 3.5%
• VA loans minimum = 0%
• USDA loans minimum = 0%

* Down Payment Assistance is available for all these loan types*