01 Are You Ready to Buy?
Buying a home is one of the biggest financial decisions of your life. Before you start, you need to honestly evaluate where you stand.
Signs you're ready
- Stable employment: At least 2 years at the same job or in the same field
- Savings: Money for down payment, closing costs, and an emergency fund
- Decent credit: 580+ for FHA, 620+ for conventional
- Manageable debt: Your debt-to-income ratio is below 43%
- Commitment: You plan to stay in the area for at least 3-5 years
Jesus's tip: You don't need perfect credit to buy a home. With programs like FHA, you can qualify with a 580 score. The most important thing is having a plan and a team to guide you.
Calculate your debt-to-income ratio (DTI)
Lenders use your DTI to determine how much you can afford. The formula is simple:
DTI = (Monthly debt payments ÷ Gross monthly income) × 100
Example: If you earn $5,000/month and your debts total $1,500/month, your DTI is 30%. Most lenders prefer a DTI below 43%.
02 Your Credit & How to Improve It
Your credit score determines the loan type and interest rate you'll receive. Here are the ranges:
| Score | Rating | Loan Options |
|---|
| 740+ | Excellent | Best rates, all programs |
| 700-739 | Good | Great rates, most programs |
| 620-699 | Fair | Conventional, FHA, VA, USDA |
| 580-619 | Low | FHA with 3.5% down |
| 500-579 | Very low | FHA with 10% down |
5 steps to improve your credit fast
- Pay on time: Payment history makes up 35% of your score
- Lower balances: Keep credit cards below 30% of their limit
- Don't open new accounts: Each inquiry temporarily lowers your score
- Dispute errors: Check your free report at annualcreditreport.com
- Don't close old cards: Account age helps your score
Important: Do NOT make large purchases, do NOT open new credit lines, and do NOT change jobs during the buying process. Any change can affect your approval.
03 How Much Money Do You Need?
Many people think they need 20% down. The reality is there are options with much less:
| Loan Type | Minimum Down | Best For |
|---|
| Conventional | 3% - 5% | Good credit (620+) |
| FHA | 3.5% | First-time buyers (580+) |
| VA | 0% | Veterans & military |
| USDA | 0% | Rural areas (Casa Grande qualifies) |
| Home Plus AZ | Up to 5% assistance | Arizona buyers |
Real example: $300,000 home
| Item | FHA (3.5%) | Conventional (5%) |
|---|
| Down payment | $10,500 | $15,000 |
| Closing costs (est. 2-3%) | $7,500 | $7,500 |
| Reserves (2 months) | $4,000 | $4,000 |
| Estimated total | $22,000 | $26,500 |
Jesus's tip: With assistance programs like Home Plus, you can receive up to 5% of the home price toward your down payment. This can significantly reduce your out-of-pocket costs. Ask me how.
04 Getting Pre-Approved
Pre-approval is your ticket into the market. Sellers only take pre-approved buyers seriously.
Documents you'll need
- Pay stubs from the last 30 days
- Tax returns (W-2s) from the last 2 years
- Bank statements from the last 2-3 months
- Photo ID (driver's license or state ID)
- Social Security number
- 2-year employment history
- Letter explaining any employment gaps (if applicable)
- Divorce or alimony documents (if applicable)
Pre-qualification vs Pre-approval
Pre-qualification: An informal estimate based on what you tell the lender. Doesn't carry much weight.
Pre-approval: The lender verifies your documents, credit, and income. This is what you need. Valid for 60-90 days.
I work with local lenders who are bilingual and know Arizona programs inside and out. I'll connect you with the best one for your situation — free of charge.
05 Finding Your Home
With your pre-approval in hand, it's time for the exciting part: house hunting.
How to build a priority list
Divide your wants into three categories:
| Must Have | Nice to Have | Dream |
|---|
| 3+ bedrooms | Large yard | Pool |
| Close to work | 2-car garage | Mountain views |
| Good schools | Updated kitchen | Guest house |
What to check at every showing
- Structure: Wall cracks, foundation, roof condition
- Systems: A/C age, water heater, electrical panel
- Plumbing: Water pressure, moisture stains
- Neighborhood: Noise, parking, neighbors, safety
- Orientation: Sun exposure (especially important in Arizona)
Jesus's tip: Don't fall in love with the first home. Visit at least 5-8 properties before making an offer. And always — ALWAYS — get a professional inspection.
06 Making an Offer & Closing
Making a competitive offer
Your agent will help you determine a fair price based on comparable sales in the area. Your offer includes:
- Offer price: Based on the market, not the listing price
- Earnest money: Typically 1-2% of the price (shows you're serious)
- Contingencies: Inspection, appraisal, financing
- Proposed closing date: Usually 30-45 days
- Seller concessions: You can ask the seller to cover some of your closing costs
The closing process step by step
- Offer accepted — The clock starts (Day 1)
- Inspection — Days 1-10. You can negotiate repairs
- Appraisal — The bank verifies the home's value
- Underwriting — The lender reviews everything in detail
- Clear to close — Your loan is approved
- Final walkthrough — You verify everything is in order
- Sign & get your keys — Day 30-45. Congratulations!
Typical closing costs: Between 2% and 3% of the purchase price. Includes title insurance, lender fees, prepaid taxes, and homeowner's insurance.
07 Your Complete Checklist
Use this checklist to make sure you don't miss anything on your homebuying journey:
Before you start looking
- Check my credit report for free
- Calculate my debt-to-income ratio
- Gather documents (pay stubs, taxes, bank statements)
- Contact Jesus Sanchez for a free consultation
- Get pre-approved
- Research assistance programs (Home Plus, FHA, USDA)
During the search
- Build my priority list (must have / nice to have / dream)
- Visit at least 5-8 homes
- Take photos and notes at each property
- Compare neighborhoods, schools, and commute times
After making an offer
- Schedule a professional home inspection
- Review the inspection report with my agent
- Secure homeowner's insurance
- Review the Closing Disclosure 3 days before closing
- Do the final walkthrough
- Bring ID and certified funds to closing
Have questions? I'm here to help you every step of the way. Whether you have a 580 or a 780 credit score — there's a program for you.