Buyers Step ONE | Phoenix Real Estate for Sale | Real Living S.J. Fowler Real Estate
George Akers, Sales Associate
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Buyers Step ONE

What is Your Financial Situation?

If you're planning to take out a mortgage to pay for your home, you need to understand how your financial situation impacts your buying options.

We'll go into more detail below, but here are the financial factors you need to have in good shape before buying a house:

Key Takeaways: Financial Requirements

  • Credit score: While there are low-credit loans, you'll need a score of at least 620 for most conventional loans. If your credit score is lower than that, start working to raise your credit score now.
  • Debt-to-income ratio: In most cases, you'll want to spend less than 36% of your income on debt (including your future mortgage payment) each month.
  • Down payment: For a conventional loan, you'll need a down payment of at least 20%.
  • Closing costs: Home buyers typically have to pay 2-5% of the home's price in closing costs. Considering the average home value in Arizona is $296,783, that amounts to $5,936-14,839. These costs usually have to be paid out of pocket, so make sure you have savings to cover them.
  • Homeownership costs: In Arizona, homeowners typically spend $4,650 in maintenance costs annually, but this can vary widely based on the house. In general, you should save 1% of the house's value each year for repairs.

Home buying is complicated. It’s not easy figuring out how to get started, how much you can afford, and what the heck “amortization” is on your own.


The best way to learn? Talk with a licensed lender who can answer your questions and show you the ropes.


  1. Bottom Line: Get Pre-Qualified .. better yet ..
  2. Get Pre-Approved!