Chase StewartREALTOR® · eXp Realty

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Buyer's Guide · Section 2

Getting pre-approved and choosing a loan

Get pre-approved before you tour homes. Lenders look at 4 things: credit score, debt-to-income ratio, 2 years of stable income, and the cash you have for a down payment and closing costs. Most conventional loans need a 620 credit score, and FHA loans allow 580 with 3.5% down.

Why pre-approval comes first

A pre-approval letter tells you your real budget and shows sellers you can close. In the Valley, listing agents expect one with every offer, and some won't schedule a showing without it.

What lenders look at

  • Credit score. Most conventional loans require 620 or higher. FHA allows 580 with 3.5% down, or 500 to 579 with 10% down. A higher score gets a better rate.
  • Debt-to-income ratio. Lenders usually want total monthly debts, including the new payment, under about 43% to 45% of gross monthly income. Some programs allow more with strong credit or savings.
  • Income and employment. 2 years of stable history is the standard. Self-employed buyers need 2 years of tax returns, and lenders average the net income.
  • Assets. Bank statements that show your down payment and closing costs.

Loan types compared

LoanMinimum downBest for
Conventional3%Good credit and stable income. No mortgage insurance with 20% down.
FHA3.5%First-time buyers and lower credit scores. Requires mortgage insurance.
VA0%Eligible veterans and service members. No monthly mortgage insurance.
Jumbo10–20%Loans above the 2026 conforming limit of $832,750 in Maricopa County.

Choosing a lender

Rates and fees vary between lenders, so compare at least 2 or 3 Loan Estimates. I work with several local lenders who close Arizona purchases on time and can introduce you.

Common questions

What credit score do I need to buy a house in Arizona?

Conventional loans usually need 620 or higher. FHA allows 580 with 3.5% down. VA loans typically need around 620, depending on the lender.

What is the conforming loan limit in Arizona?

$832,750 for a 1-unit home in Maricopa County in 2026. Loans above that amount are jumbo loans. The limit is updated each November for the following year.

Rules, rates, and limits change, so confirm current numbers with your lender and escrow officer before you rely on them.