1. Prepare Your Finances:
Assess your budget:

Determine how much you can comfortably afford for a down payment, monthly mortgage payments, property taxes,

and insurance. Your mortgage payment should not take up more than 28% of your total monthly income. Also, your 

mortgage combined with other debts like student loans, car payments, and credit card payments should not exceed 33% of

your monthly income.

Know your credit score:

A good credit score is crucial for securing a favorable mortgage. The three main credit bureaus in the United States are Equifax, Experian, and TransUnion. To check your credit score with Equifax and Transunion log-in to creditkarma.com. To check your Experian score log-in directly to usa.experian.com. (there are other websites you can check with as well)

Save for a down payment and closing costs:

Aim to save at least 20% of the home's purchase price for a down payment, plus funds for closing costs. In Arizona, closing costs for homebuyers typically range from 2% to 5% of the home's purchase price, while sellers can expect to pay around 6-7%.

2. Get Pre-Approved for a Mortgage:
Shop for a lender:

Research different lenders and compare mortgage options.
Get pre-approved:

This will give you a clear idea of how much you can borrow and strengthen your offer when you find a home.

3. Find a Real Estate Agent:
Choose an experienced agent:

Once you are pre-approved you will need an experienced agent to guide you through the process and help you find the right property.
Work with a local agent:

Someone familiar with the Phoenix area can provide valuable insights.

4. Start House Hunting:

Your real estate agent will prepare a home search based on your needs and wants:

Define your needs and wants by creating a list of must-have features and preferences.

Explore different neighborhoods:

Consider factors like schools, amenities, and commute times.

Get a feel for the market and different types of homes.

5. Make an Offer:

Once you decide on a home, your real estate agent will submit an offer on your behalf:

Work with your agent to make a competitive offer that is within your budget.

Be prepared to obtain a cashiers check/personal check for the earnest deposit to submit with your offer.

Your Agent will negotiate with the seller's agent the terms of the offer:

Carefully review all the details before signing.

6. Secure Financing:
Apply for a mortgage:

Once your offer is accepted, apply for the mortgage you were pre-approved for.
Your loan officer will require you to provide specific documentation necessary to complete your loan application.

7. Get Inspections and Appraisals:
Once you have an accepted offer your agent will schedule a home inspection:
The inspector will identify any potential issues with the property. In Arizona, it is recommended to use a Termite Inspector

as well. Depending on the inspection results, you may either cancel the contract and not proceed with the purchase, or you may ask the seller to repair or credit any issues of concern on a document called the BINSR.

Order an appraisal:

Once the inspections are completed and the BINSR is accepted, the lender will order an appraisal to determine the property's market value. Generally, if the property does not appraise for the purchase price, the buyer may negotiate a lower purchase price, cancel the contract, or pay the difference. 

8. Finalize the mortgage:

Once the appraisal and inspection are complete, your mortgage will be finalized.

The title company will schedule a closing date to Sign all the necessary documents

to close the deal.

9. Close of Escrow:

Before your close of escrow date, you and your agent will perform a final walk-thru inspection on the property to ensure all items on the BINSR were corrected, and the condition of the home is the same as when the offer was made. If everything is 

acceptable, the transaction may proceed.

On close of escrow day, the title officer reviews the sale agreement, determines payments and credits for both parties, and ensures transaction costs (taxes, title searches) are paid.
Deed Recording:
The escrow company prepares the deed, which declares the buyer as the legal owner, and submits it to the county recorder's office for recording.
Funds Distribution:
The escrow agent distributes the funds, including the seller's proceeds, and any remaining funds are applied to the mortgage or taxes.
Buyer Takes Possession:
Once the deed is recorded, the buyer receives the keys from their agent and takes possession of the property.
Escrow Closed:
The escrow account is closed, signifying the completion of the transaction. 

Note:  Every home purchase is unique, influenced by individual circumstances, market conditions, and the specific property, making each transaction a unique experience. These are some of the most common processes involved with a financed purchase.

The Homebuying Process