By Isela Felix & The Felix Home Team – Your Trusted Arizona Real Estate Experts

Buying a home in Arizona? The first step to making your dream home a reality is mortgage pre-approval. A pre-approval not only gives you a clear budget but also shows sellers that you're a serious buyer—giving you a competitive edge in the market.

At Felix Home Team, we believe in making home buying as smooth as possible. This guide will walk you through the pre-approval process, what you need, and how to get started.

What is Mortgage Pre-Approval?

Pre-approval is when a lender evaluates your financial situation, credit score, and income to determine how much they’re willing to lend you for a home. It’s different from pre-qualification, which is just an estimate. Pre-approval is a formal process that carries more weight in the real estate market.

Why is Pre-Approval Important in Arizona?

  1. Stronger Offers – Sellers take pre-approved buyers more seriously.

  2. Know Your Budget – Shop for homes within your price range.

  3. Faster Closing Process – Reduces financing delays once your offer is accepted.

  4. Higher Negotiating Power – Helps in competitive housing markets like Phoenix, Scottsdale, and Tucson.

Step-by-Step Guide to Mortgage Pre-Approval

Step 1: Gather Your Financial Documents

Lenders require specific documents to assess your financial stability:
Proof of Identity – Driver’s license or passport.
Income Verification – Pay stubs, W-2 forms, tax returns (last 2 years).
Asset Verification – Bank statements, 401(k), or retirement account details.
Employment Details – Employer contact info and work history.
Debt & Credit Overview – Credit card statements, loan balances, and monthly payments.

📌 Tip from Felix Home Team: If you're self-employed, lenders may ask for additional documents, such as business tax returns and profit & loss statements.

Step 2: Choose the Right Arizona Lender

Not all lenders are created equal. Research and compare:
🏦 Traditional Banks (Chase, Wells Fargo)
🏡 Credit Unions (Arizona Federal Credit Union)
💻 Online Mortgage Lenders (Rocket Mortgage, Better.com)
👩‍💼 Mortgage Brokers (They shop around for the best rates for you!)

Pro Tip: Work with a local lender who understands Arizona's real estate market and loan programs (e.g., FHA, VA, Jumbo Loans). Felix Home Team has trusted lender recommendations—reach out to us for referrals!

Step 3: Submit Your Mortgage Application

Your lender will guide you through a mortgage application that includes:
📌 Personal Information (Name, SSN, Address)
📌 Employment & Income Details
📌 Credit Check Authorization

Lenders use Debt-to-Income (DTI) Ratio and Credit Score to determine your eligibility. A higher credit score can get you better interest rates!

Step 4: Credit Check & Underwriting Review

Your lender will pull your credit report to check:
🔹 Payment history & credit utilization
🔹 Existing loans & credit card balances
🔹 Any late payments, bankruptcies, or foreclosures

🔑 Arizona Market Insight:
To qualify for the best mortgage rates, aim for a credit score of 700+. However, FHA loans may approve scores as low as 580 with a 3.5% down payment.

Step 5: Receive Your Pre-Approval Letter

Once your lender reviews your finances, they’ll issue a pre-approval letter stating:
✔️ The maximum loan amount you qualify for
✔️ Estimated interest rate & loan terms
✔️ Any conditions to meet before final approval

💡 Why This Matters: A pre-approval letter gives you a strong edge in Arizona’s competitive housing market. Homes in Phoenix and Scottsdale sell FAST!

FAQs About Mortgage Pre-Approval in Arizona

1. How long does mortgage pre-approval last?

Most pre-approval letters are valid for 60-90 days. If you haven’t found a home by then, you may need to update your financial documents.

2. Can I get pre-approved for a mortgage with bad credit?

Yes! FHA loans allow lower credit scores (580+), and some lenders offer flexible financing options. You may need a higher down payment or co-signer.

3. Does mortgage pre-approval affect my credit score?

Yes, but only slightly. A hard inquiry may lower your score by 5-10 points. If you apply with multiple lenders within a short period (14-45 days), credit agencies treat it as one inquiry.

4. How much should I save for a down payment in Arizona?

🔹 FHA Loan – 3.5%
🔹 Conventional Loan – 5-20%
🔹 VA Loan – 0% (for eligible veterans)

💡 In Phoenix, where median home prices are around $450,000, a 3.5% down payment would be $15,750.

5. What if my financial situation changes after pre-approval?

Avoid big purchases (like a new car) or quitting your job before closing. Any financial changes can affect your mortgage approval!

Final Step: Start House Hunting with Felix Home Team!

With your pre-approval letter in hand, it’s time to find your dream home in Arizona! 🏡✨

🔹 Looking for expert guidance? Connect with Isela Felix and the Felix Home Team—your trusted Arizona real estate agents.