First-Time Buyer's Complete Guide: Phoenix Valley

Before you look at a single listing, spend time on your financial picture. The buyers who do this work first have faster, smoother transactions and far less stress. The buyers who skip it fall in love with homes they cannot buy.

More than most people think, but less than most people fear. You need four things: a down payment, closing costs, prepaid items, and a reserve.

Down payment depends on your loan program. FHA requires as little as 3.5% down -- the exact amount depends on your credit profile, and your lender will confirm what applies to you. Conventional loans go as low as 3% with some programs. VA and USDA loans require zero down for eligible borrowers.

Closing costs in Arizona typically run 2% to 3% of the purchase price. On a $400,000 home that is $8,000 to $12,000. Some of this can be negotiated as seller concessions, but do not count on it in a competitive market.

Prepaid items include your first year of homeowner's insurance, prepaid interest for the days between closing and your first payment, and initial escrow deposits for property taxes and future insurance premiums. Your lender will give you a Loan Estimate early in the process that lists every dollar.

Reserves matter. Most lenders want to see that after closing you still have two to three months of mortgage payments in the bank. And practically speaking, every home has something that needs attention in the first year. Budget for it.

Every loan program has a minimum credit score requirement, and individual lenders add their own overlays on top of those. Your lender is the right source for the exact threshold that applies to your situation -- they change, vary by lender, and depend on the full picture of your file, not just one number.

Your score is not just a pass/fail gate -- it also directly determines your interest rate. A meaningfully higher score can translate to a lower rate and a lower payment on the same loan. If your score has room to improve, many loan officers will run a rapid rescore analysis and show you exactly which moves will have the most impact before you apply.

Lenders pull all three bureaus (Equifax, Experian, TransUnion) and use the middle score. If you have a co-borrower, they typically use the lower of the two middle scores. Before you apply, know your three scores so there are no surprises when the lender pulls credit.

Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward monthly debt payments. Lenders look at two versions: front-end DTI (just the new housing payment) and back-end DTI (housing plus all other monthly debt obligations like car loans, student loans, and minimum credit card payments).

Every loan program has DTI thresholds, and lenders apply their own overlays on top of program guidelines. Your lender will run your numbers and tell you exactly where you stand and what loan types your DTI supports.

The practical point: if you have a $1,200 car payment and $400 in student loan minimums, that $1,600 in existing debt significantly reduces the mortgage payment you can carry. Pay down or pay off installment debt before applying if you can. And do not take on a new car loan, furniture financing, or any other new debt from the time you start the process until after you close.

Neither extreme is usually right. Closing every credit account will hurt your score because it reduces available credit and shortens account history. On the other hand, carrying high balances while trying to save for a down payment is expensive.

The right balance depends on your numbers. A good loan officer will run multiple scenarios for you: what happens if you pay off the car loan, what happens if you reduce the card balance to 30% utilization, what happens if you do both. Run the scenarios before you make big financial moves. What looks like a smart payoff decision can sometimes do more harm than good if it closes accounts or depletes reserves you will need at closing.

You have more options than you probably realize. Here is the landscape as of 2026:

3% down: Available with conventional loans through Fannie Mae and Freddie Mac programs (HomeReady, Home Possible). Requires PMI. Income limits may apply.

3.5% down: FHA standard. Credit score and other eligibility requirements apply -- your lender will confirm. Mortgage insurance is required for the life of the loan unless you refinance.

5% to 10% down: Conventional with PMI, but PMI can be removed when you reach 20% equity. Better rates than FHA at comparable credit scores.

20% down: No PMI on conventional. Strongest offer position. Not required and often not the best financial decision given opportunity cost.

0% down: VA loans for eligible veterans, active-duty service members, and surviving spouses. No PMI, competitive rates, no income limit. USDA loans for eligible areas and income levels -- parts of the Phoenix metro fringe qualify.

Yes, and they are more useful than most buyers know. Here are the primary ones for the Phoenix Valley as of 2026:

Home Plus AZ (statewide): Pairs a 30-year fixed mortgage with up to 4% to 5% in down payment and closing cost assistance. Income limits apply and change periodically -- a participating lender will confirm current eligibility. No strict first-time buyer requirement -- anyone who has not owned a primary residence in the past three years typically qualifies, and some programs have no first-time requirement at all. The DPA is a deferred second loan, forgivable after three years if you stay in the home. Available in every county in Arizona. Find participating lenders at homeplusaz.com.

Home in Five Advantage (Maricopa County): Up to 6% in down payment assistance. Income limits and credit requirements apply -- a participating lender will confirm current figures. Targeted at buyers in Maricopa County, which covers most of the Phoenix metro.

Arizona Is Home (statewide): First-time buyer focused, defined as no primary residence ownership in the past three years. AMI-based income limits. Silent second mortgage. Funding is periodically limited, so check current availability.

City of Phoenix programs: For buyers at or below 80% of area median income purchasing within Phoenix city limits. Purchase price caps apply. Requires HUD-approved homebuyer education.

The critical point: many buyers assume they do not qualify and never ask. Have the conversation with a lender who participates in these programs. Eligibility depends on your specific income, purchase price, and location, and the rules change. Do not rule it out based on a guess.

PMI stands for private mortgage insurance. It protects the lender (not you) if you default. It is required on conventional loans when your down payment is below 20%.

PMI on conventional loans can be removed. Once your loan balance drops to 80% of the original appraised value, you can request cancellation. At 78% it must be automatically terminated by law. You can also potentially remove it earlier if your home has appreciated significantly and you pay for a new appraisal.

FHA is different. FHA charges mortgage insurance premium (MIP) for the life of the loan if your down payment was below 10%. If you put down 10% or more on an FHA loan, MIP falls off after 11 years. Many buyers start on FHA and refinance to conventional once they have enough equity to eliminate MIP -- that is a legitimate strategy but only makes sense if rates and your financial picture support it at that future point.

VA loans have no PMI at all, which is one of the most significant financial benefits of VA eligibility.

Your lender will give you a maximum approval amount. That number is a ceiling, not a target. Before you search at the top of your approval, run your own budget.

In Arizona, factor in: principal and interest (your lender will quote this), homeowner's insurance (roughly $100 to $200 per month depending on coverage), property taxes (Maricopa County rates vary by city and municipality -- see Q34), HOA fees if applicable (from $0 in non-HOA areas to $800 per month or more in high-amenity communities), and PMI if your down payment is under 20%.

Add those up and compare to what you pay now for housing. The difference is your real increase in monthly obligations. Make sure that number is comfortable, not just technically possible. Approved for a payment and comfortable with a payment are two different things.

Getting pre-approved is the first action step. Everything else follows from it.

Pre-qualification is an estimate based on information you provide verbally or through a quick online form. The lender has not verified anything. In a competitive market, a pre-qual letter tells the listing agent that you are not ready.

Pre-approval means you have submitted documentation, the lender has pulled your credit, verified your income and assets, and underwritten your file to a specific loan amount. Some lenders go further with a full credit approval (sometimes called a TBD or underwritten pre-approval), where everything is cleared except the property address. That is the strongest position a buyer can hold.

In the Phoenix Valley, listing agents call buyer lenders when reviewing offers. I do this when I represent sellers. I ask whether income and assets are verified, whether there are any flags, and how long the lender has worked with this buyer. A lender who hesitates tells me something. A pre-approval from a known local lender who stands behind their work is worth more than the same terms from an unfamiliar online lender.

For most W-2 employees: two years of W-2 forms, most recent 30 days of pay stubs, two to three months of bank statements for all accounts (checking, savings, investment), and photo ID.

For self-employed borrowers: two years of personal tax returns (all schedules), two years of business tax returns if you own more than 25% of the business, a year-to-date profit and loss statement, and potentially a CPA letter confirming your business is operating. Self-employed borrowers often need a stronger file to get the same approval a W-2 employee gets easily.

If you have rental income, gift funds for the down payment, divorce decree payments, or any other non-standard income, ask your lender upfront what documentation is required. Surprises discovered mid-transaction are expensive in time and stress.

Conventional loans (Fannie Mae/Freddie Mac): Best for buyers with solid credit and a meaningful down payment. PMI is removable. Rates are often better than FHA at comparable scores. No property condition restrictions (unlike FHA, which requires the home to meet minimum property standards).

FHA loans: Best for buyers with lower credit scores or limited down payment savings. More flexible on DTI. The trade-off is mortgage insurance that stays for the life of the loan (if you put less than 10% down). Also has property condition requirements -- some homes will not pass FHA appraisal, which limits your options in fixer-upper markets.

VA loans: For eligible veterans, active duty, and surviving spouses. No down payment, no PMI, competitive rates, no income limit. One of the best mortgage products in existence for those who qualify. The VA funding fee can be financed into the loan. Sellers sometimes have misconceptions about VA loans -- I help VA buyers navigate those situations.

USDA loans: Zero down for eligible properties in eligible rural and some suburban areas. Parts of the outer Phoenix metro qualify. Income limits apply. Not widely used in the core Valley but worth checking if you are considering Maricopa, Casa Grande, Queen Creek edges, or similar areas.

The right answer for your situation comes from a lender who runs the numbers on all applicable options and shows you the true monthly payment and total cost comparison side by side.

Ask me. I can introduce you to lenders who are responsive, accurate, and whose pre-approval letters carry weight with listing agents. That is not a small thing. A lender whose underwriting is solid and whose closings happen on schedule protects your deal from falling apart over financing.

If you are shopping independently, ask every lender the same questions: What loan programs am I eligible for? What are the total closing costs, not just the rate? How long does your underwriting take? Will my file have a dedicated loan processor? What happens if something comes up and I need to close quickly?

Watch out for the lender who quotes you the best rate but cannot close on time. In Arizona, a failed closing can cost you your earnest money. A reputable lender who closes on schedule is worth more than a slightly better rate from one who cannot.

With your pre-approval in hand, now you search. Here is how to do it well.

You do not legally need one. But buying without representation in Arizona is like going to court without a lawyer when the other side has one.

As your buyer's agent, I represent your interests exclusively. I help you identify the right homes, understand what they are actually worth in the current market, write a competitive offer that protects you without giving away your rights, navigate the inspection and negotiation, manage the appraisal, and hold the transaction together through closing. I know when a deal is in trouble before my clients do, because I have seen the patterns.

The seller has a listing agent who is representing the seller's interests and is paid to get the highest price with the fewest concessions. Having no representation means you are negotiating against a professional whose job is to work against your financial interests.

The process changed in mid-2024. Previously, seller compensation to the buyer's agent was embedded in the MLS listing. Now, buyer agent compensation must be negotiated directly in a buyer representation agreement (BRA) between you and your agent before you tour homes.

In practice in the Phoenix Valley: many sellers still offer compensation to the buyer's agent, either in the listing terms or as part of offer negotiations. If a seller does not offer to cover my fee, we can negotiate it as part of your offer -- asking the seller to pay it as a concession. You can also pay it directly out of pocket, though most buyers prefer not to.

The most important thing is that the compensation structure is transparent and agreed upon before we start. I will walk you through exactly how it works and what you are agreeing to before you sign anything.

ARMLS is the Arizona Regional Multiple Listing Service. It is the database that licensed agents use to list and search properties in the Phoenix metro. When you search Zillow, Realtor.com, or Homes.com, you are seeing a delayed and sometimes incomplete feed from ARMLS.

I can set you up with direct ARMLS alerts so you see new listings the moment they hit the market -- not 24 to 48 hours later. In a market where desirable homes in some price ranges go under contract within days, seeing it first matters.

I also have access to the full listing history, days on market, price reductions, and listing agent notes that consumer portals often do not show. That context shapes how I advise you on pricing and offer strategy.

Separate cosmetics from structure. Paint, flooring, fixtures, and landscaping are cheap to change. Foundation cracks, roof age, HVAC condition, plumbing and electrical condition, water damage evidence, and drainage issues are expensive.

In Arizona specifically: check the age and condition of the HVAC (air conditioning is not optional here -- a failing unit in July is a crisis). Check for signs of moisture intrusion around windows and doors, which is less common here than humid climates but does happen. Assess roof condition -- tile roofs common in the Valley can last 50 years but need periodic maintenance. Ask about the age of the water heater.

Look at the sun exposure. A west-facing back patio is brutal in Phoenix summers. A covered patio helps. Single-pane windows and inadequate insulation will cost you in utility bills.

Check HOA documents if applicable. I will request the HOA disclosure package as part of your offer, but during touring you can ask the listing agent about HOA fees, rules on rentals, parking restrictions, and any pending assessments.

Walk the street. Drive it at night. Check the location relative to the 101, 202, I-10, and I-17 if commute matters. Valley traffic patterns vary significantly by time of day and direction.

New construction in the Phoenix Valley is a significant part of the market. The major builders -- D.R. Horton, Pulte, Lennar, Taylor Morrison, Toll Brothers, and others -- have active communities across the Valley.

The builder's sales agent works for the builder. Their job is to protect the builder's interests, not yours. You can and should have your own agent representing you in a new construction purchase. Builder contracts are heavily builder-favorable, and knowing what is negotiable (lot premiums, design center options, rate buydowns, closing cost contributions) versus what is fixed is something an experienced agent brings.

New construction advantages: no competing offers on spec homes (sometimes), builder warranties, modern energy efficiency, the ability to customize in some cases. Disadvantages: price premiums, longer timelines for to-be-built homes, neighborhoods without established trees or character, and the reality that some builders are better than others on build quality.

Resale advantages: established neighborhoods, known condition (you see what you get), faster closing timeline, more room to negotiate. Disadvantages: deferred maintenance, older systems, the need for a thorough inspection.

You found the right home. Now the transaction begins. Here is how offers work in Arizona.

Competitive does not always mean highest price. It means the combination of price, terms, and certainty that the seller finds most compelling.

Price: I pull comps from ARMLS before every offer and show you what comparable homes have actually sold for. In some neighborhoods and price ranges, list price is market price. In others there is room. I will tell you which situation you are in.

Terms that strengthen an offer: a strong pre-approval letter from a reputable local lender, a reasonable earnest money deposit (see Q19), a clean inspection contingency (not waived, but reasonable), a closing timeline that works for the seller, and minimal contingencies.

Escalation clauses: in competitive multi-offer situations, an escalation clause automatically increases your offer to a set amount above competing offers up to a cap. I use these strategically. They work well in some situations and expose your ceiling in others.

The cover letter: some sellers respond to a personal note from buyers about why they love the home. It is not a factor in every transaction, but it costs nothing.

What I do not advise: waiving the inspection entirely, waiving appraisal protection without a plan for the gap, or offering a price you cannot justify with comps. I have seen buyers win offers they regretted because they paid too much under pressure.

Earnest money is a good-faith deposit that accompanies your accepted offer. It is held in escrow by the title company and credited toward your purchase price or closing costs at closing. It is not an additional cost -- it is part of your total payment.

In Arizona, earnest money is typically 1% of the purchase price, though in competitive situations buyers sometimes offer more to signal seriousness. On a $400,000 home, $4,000 is typical. Offering $10,000 is not unusual for a highly competitive home.

Earnest money is at risk if you cancel the contract outside of your contingency periods without a contractual right to cancel. If you are in your inspection period and cancel because of inspection findings, your earnest money is protected. If you cancel after your contingency deadlines have passed for a reason not covered by the contract, the seller can potentially claim it.

I walk every first-time buyer through exactly when their earnest money is protected and when it is not before we submit an offer. You should never feel uncertain about this.

Contingencies are contractual rights to cancel the deal if specific conditions are not met. In Arizona, the standard BINSR contract covers three primary contingencies.

Inspection contingency: Gives you the right to conduct inspections and cancel or negotiate based on findings. The inspection period in Arizona is typically 10 days but is negotiable. Do not waive this.

Financing contingency (loan contingency): Protects your earnest money if your financing falls through for a documented reason. This is especially important for buyers who are not all-cash.

Appraisal contingency: Protects you if the home appraises below the purchase price. If you remove the appraisal contingency and the home appraises low, you either pay the difference out of pocket or lose your earnest money if you walk. In competitive situations, some buyers offer to cover an appraisal gap up to a certain amount. I help you think through this before you commit.

Other contingencies: HOA review period (Arizona law provides a right to review HOA documents and cancel if you find something unacceptable), sale of a prior home (if you need to sell your current home first -- this weakens your offer significantly in a competitive market), and CLUE report review.

Multiple offer situations are common in the Phoenix Valley, particularly in the entry-level and move-up price ranges. The seller's agent will typically ask all buyers to submit their best and final offer by a deadline, or they may work sequentially with the strongest offer first.

My job in a multiple offer situation: know what the home is worth and what the market will bear, advise you on how far you need to stretch versus how much you are competing against yourself, structure your terms to be as clean and seller-friendly as possible while protecting your interests, and help you decide whether this specific home is worth winning at any price or whether you should let it go and find the next one.

Not every multiple offer situation is worth winning. The worst outcome is winning an offer at a price that does not appraise, on a home with significant undisclosed issues, because you felt pressure to compete. I keep that perspective in the room.

Rejection is part of the process, especially in a market with limited inventory. Most first-time buyers get at least one rejection before they close on a home. This is normal and it is not personal.

A counter-offer is an invitation to negotiate. I will analyze every counter and help you decide how to respond -- whether to accept, counter back, or walk away. The seller's counter tells you a lot about their flexibility and their motivations.

One thing I tell every first-time buyer: the first home you fall in love with is rarely the last one that will work for you. The Valley produces new listings every day. Stay disciplined on price and terms and you will find the right home.

Your offer was accepted. You are now under contract. This is the most complex phase and where having an experienced agent makes the biggest difference.

A typical Arizona transaction timeline looks like this:

Days 1 to 3: Earnest money deposited with the title company. Inspection scheduled. Loan application formally submitted to lender if not already done.

Days 1 to 10 (or per contract): Inspection period. You inspect, receive the report, and decide whether to proceed, request repairs, or cancel.

Days 10 to 14: BINSR (Buyer's Inspection Notice and Seller's Response) submitted if you are requesting repairs or credits. Seller has a defined period to respond.

Days 14 to 21: Appraisal ordered by lender. HOA documents delivered and review period begins.

Days 21 to 30: Appraisal completed. Lender finalizing underwriting. Title search in progress.

Days 25 to 28: Final underwriting conditions satisfied. Clear to Close issued by lender.

Day 28 to 30 (or per contract): Final walkthrough. Closing disclosure reviewed (3 days before closing required). Wired funds sent by buyer. Closing documents signed.

Closing day: Documents recorded with Maricopa County. Keys released.

This is a general framework. Your specific contract will have agreed-upon dates for each milestone. I track every deadline and make sure nothing slips.

A general home inspection is a visual examination of accessible systems and components: roof, exterior, foundation, structure, HVAC, plumbing, electrical, insulation, and interior. The inspector is looking for defects, safety issues, and signs of deferred maintenance.

In Arizona you may also want: a sewer scope (snake camera into the sewer line to check for root intrusion or collapse -- highly recommended on older homes), a pool/spa inspection if applicable, a roof inspection by a roofing contractor in addition to the general inspector, and a pest/termite inspection (termites are common in Arizona).

The inspector will give you a written report with photos. Most homes have items in the report. A long report does not necessarily mean a bad home -- it means a thorough inspector. I have a list of inspectors I recommend in the Valley.

What matters: distinguishing deferred maintenance items from structural or system failures. A 12-year-old HVAC that works fine but is near end of life is a different conversation than an HVAC that is failing. I help you read the report and calibrate your response.

The BINSR is Arizona's Buyer's Inspection Notice and Seller's Response. It is a standardized form that is unique to Arizona and one of the most important negotiating moments in a real estate transaction.

After your inspection, you complete the BINSR to tell the seller which items you want addressed. Your options for each item: ask the seller to repair it, ask for a credit at closing instead of a repair, accept the item as-is and waive any claim related to it, or a combination.

The seller then responds: they can agree to repair, offer a credit, decline, or propose a different resolution. If you cannot reach agreement, you have the right to cancel and receive your earnest money back within the inspection period.

My approach to the BINSR: focus on the items that genuinely matter -- safety issues, material defects, system failures -- rather than sending a 50-item list that puts the seller on the defensive. A targeted, well-reasoned BINSR gets better results than a laundry list. I have negotiated hundreds of these and know what sellers will and will not accept in the current market.

The appraisal is an independent valuation of the property ordered by your lender. The lender will not loan more than the appraised value. If you are buying at $420,000 and the home appraises at $400,000, you have a $20,000 gap.

Your options when an appraisal comes in low: negotiate the price down to appraised value (sellers sometimes accept this, especially if the market has softened), pay the gap out of pocket in addition to your down payment, cancel the contract if you have an appraisal contingency and receive your earnest money back, or challenge the appraisal with comparable sales data (this occasionally works).

The appraisal contingency in your contract is what protects you here. If you removed it or agreed to cover a gap, you are bound by that commitment. This is why I advise buyers carefully before they waive or modify the appraisal contingency.

In Arizona, escrow refers to both a phase of the transaction and an ongoing account.

Transaction escrow: the title company acts as a neutral third party that holds your earnest money, manages the flow of documents, coordinates payoffs and proceeds, and facilitates the closing. Arizona is an escrow state -- the title company handles closing, not an attorney (unlike some other states).

Lender escrow account: after closing, your lender typically maintains an escrow account (also called an impound account) funded by a portion of your monthly mortgage payment. This account pays your property taxes and homeowner's insurance when they come due. You do not have to remember to pay these yourself -- the lender handles it and adjusts your payment annually as taxes and insurance costs change.

In Arizona, the buyer typically has the right to choose the title company. This is different from some states where the seller controls the title choice.

The title company does the title search (confirming the seller has clear, marketable title to transfer to you), issues title insurance, holds the escrow funds, prepares closing documents, and handles the recording of the deed with Maricopa County.

Title insurance is a one-time premium paid at closing. There are two policies: a lender's policy (required by your lender) and an owner's policy (protects you). I always recommend the owner's policy. It protects you against title defects -- liens, encumbrances, errors in the public record -- that are not discovered during the title search.

I work with title companies in the Valley whose teams are responsive and whose closings go smoothly. I can introduce you to them.

Closing costs typically run 2% to 3% of the purchase price for buyers. Here is what makes up that total:

Loan origination fees: charged by the lender for processing the loan. Ranges from 0 to 1% depending on the lender and rate structure.

Appraisal fee: $500 to $700 typically, paid during the transaction.

Title insurance premiums: lender's policy and owner's policy combined, typically $1,000 to $2,000 depending on purchase price.

Escrow/closing fee: the title company's fee for managing the closing, typically split between buyer and seller or paid per local custom.

Prepaid interest: interest that accrues from your closing date to the end of the month. Closing early in the month costs more in prepaids; closing at the end of the month costs less.

Prepaid insurance: your first year of homeowner's insurance paid upfront at closing.

Initial escrow deposit: two to three months of property taxes and insurance funded into your escrow account.

Recording fees: Maricopa County charges to record the deed and deed of trust.

Home warranty: optional, but first-time buyers often purchase a one-year home warranty for $400 to $700.

In Arizona, it is common and acceptable to ask the seller to contribute toward closing costs as part of your offer. Seller concessions up to 3% of the purchase price are typical on FHA loans and sometimes conventional. In a competitive market, seller concessions are harder to get.

Wire fraud is one of the most significant risks in real estate transactions, and the Valley has had high-profile cases. Here is how it works: criminals monitor real estate transactions (often by compromising email accounts) and send fraudulent wiring instructions that appear to come from your title company, your agent, or your lender. You wire your closing funds to the criminal's account instead of the title company. Once wired, funds are nearly impossible to recover.

How to protect yourself: call the title company directly using a phone number you found independently (not from any email) before wiring any funds. Verify wiring instructions by phone every time, even if you have wired to that company before. Never trust wiring instructions received only by email, even from addresses you recognize. If anything in a wiring instruction changes mid-transaction, treat it as a red flag and verify by phone immediately.

The title company will give you verified wiring instructions in person or through a secure portal. If you receive an email with wiring instructions that were not expected or that differ from what you were told, stop and call before acting.

You are almost there. Here is what closing looks like and what comes after.

Closing in Arizona takes place at the title company, typically in a 60- to 90-minute appointment. You will sign a significant stack of documents -- your loan documents, the deed, the closing disclosure, and various disclosures and acknowledgments.

Before closing: review your Closing Disclosure carefully. Your lender is required to provide it three business days before closing. Compare it to the Loan Estimate you received at application. If numbers changed significantly, ask why.

You will wire your down payment and closing costs to the title company in advance of the closing appointment. Do not do this without calling to verify instructions (see Q30).

Bring valid government-issued photo ID. Some title companies require it to match exactly what is on your loan documents.

After you sign: the title company sends the documents to the lender for funding authorization. Once funding occurs, the deed is recorded with Maricopa County (often the same day, sometimes the next day).

In Arizona, possession typically transfers at closing and funding -- the moment the deed records. Your contract will specify possession terms. The standard is that keys are released when the transaction has recorded.

This means if you close and sign at 9am, you may not have keys until 3pm or later that day if recording takes time. The title company will call your agent when it records, and we will get you keys as quickly as possible.

Occasionally contracts specify seller possession after closing -- for example, if the seller needs a few days to move out. If this is the case, it will be addressed in your contract and any post-possession agreement before you sign.

Change the locks or rekey them. You do not know who has copies of the existing keys.

Transfer utilities immediately. In Arizona, this includes APS or SRP for electric, Southwest Gas if the home has gas, city water and sewer, and trash service. Do not wait -- in a Phoenix summer, going without A/C even briefly is a real problem.

Locate your main water shutoff, electrical panel, gas shutoff, and HVAC filter. Know where they are before you need them in an emergency.

Set up your homeowner's insurance. It should be active before closing, but confirm coverage and get your policy documents.

Review your HOA documents and rules if applicable. Know your trash day, parking rules, modification request process, and any upcoming HOA meetings or assessments.

Test every system: HVAC, water heater, all appliances, garage door openers, and irrigation system if present. Report any issues that should have been caught in inspection promptly.

Arizona property taxes are due in two installments: the first half is due October 1 (delinquent November 1) and the second half is due March 1 (delinquent May 1). Your lender will typically handle these payments from your escrow account.

Property tax rates in Maricopa County vary by city and special taxing district. The effective rate for most residential properties in the Valley runs roughly 0.5% to 1% of assessed value annually. Arizona uses an assessed value that is a percentage of full cash value -- for residential owner-occupied properties, it is 10% of full cash value, with a further primary tax levy applied.

Arizona also has a homestead exemption called the Owner-Occupied Tax Credit for primary residences that reduces the property tax burden. Verify that this is applied to your property after you close -- it is not always automatic and requires a simple application.

At the time of purchase, make sure you understand the current assessed value on the home. If you paid more than the assessed value, you may see a reassessment in the following tax year that increases your tax bill. Your lender's escrow analysis is based on current taxes, not future ones.

If the home is in a homeowners association (HOA), Arizona law requires the seller to provide you with a package of HOA documents within a defined period after your offer is accepted. You then have a review period during which you can cancel the contract for any HOA-related reason and receive your earnest money back.

What to look for in the HOA package: the CC&Rs (Covenants, Conditions and Restrictions -- the rules you agree to follow), current financial statements, reserve fund balance (low reserves often mean a pending special assessment), meeting minutes from the past year (look for discussions of significant repairs, litigation, or rule changes), and current fee schedule.

Red flags: low reserve fund (under 10% to 15% of annual budget suggests the HOA is not saving adequately for future repairs), pending litigation involving the HOA, deferred maintenance on common areas, or rules that conflict with how you intend to use the property (rentals, pets, parking, etc.).

I help buyers review HOA documents and flag anything that warrants a closer look. A high-amenity community with a well-run HOA is a genuine asset. A poorly managed one can cost you money and frustration for as long as you own the home.

If you read this and still have questions specific to your situation, that is what I am here for. Call or text me at (623) 826-0888. You reach me directly, not a call center. I have been doing this for 24 years in this market and I will give you a straight answer.

Jon Hegreness | Howe Realty | License BR540940000 | PreviewArizonaHomes.com